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Cyrus and Hemsworth set up home
Liam Hemsworth and Miley Cyrus. Picture: Pascal Le Segretain/Getty Images.

Miley Cyrus and her Aussie fiance Liam Hemsworth have set up home in the house her parents once lived in.

The former Hannah Montana star grew up in a Mediterranean-style villa in San Fernando Valley, California, but when her parents, Tish and country singer Billy Ray Cyrus, decided to move out after purchasing a property two doors down - Miley and Hemsworth moved in.

And while the 19-year-old admits it is a little weird occupying the master bedroom, living in close proximity to her parents has its perks.

"It's really weird (sleeping) in my parents' room. Now it's my room, and Liam is at my dad's sink and I'm at my mum's. It's really strange but also really cool," she told Marie Claire magazine.

"If Liam is travelling and I'm feeling creeped out, I can go to my parents'. Or I'll walk over there in the morning for coffee."

And Cyrus reveals some of her famous neighbours include Bob Hope's widow Dolores and P. Diddy, who lives across the street.