Yahoo Finance Property pals: young Australians consider buying a home with friends
Wannabe home owners turn to creative ways to get on the property ladder
Research released today by the National Australia Bank revealed that 40% of young Australians are considering buying a property with someone other than a romantic partner. The option of buying a home with a friend was the second most popular option nominated by young people as a way to get into the property market.
Outside of dropping their price range, buying with another person tops the list of compromises Aussies aged 18 to 29 are prepared to make to get into the market.
'Rentvesting' where buyers invest in an area where they can afford to buy and put in tenants, while renting in an area where then owner wants to live was another popular option. Almost a third of those surveyed saying they would be willing to buy and rent the property out initially, while 20% say they’re up for moving into a share house.
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The most common tactic to get into the Australian property market was still the most traditional in the survey with 41% of respondents saying they would adjust the amount they are willing to spend on property, while 31% said that they would trade off with the size of the land, garden or outdoor space while 28% said they would be willing to give up on their preferred location to secure a home.
10% said they would not be willing to compromise at all on their wish list.
NAB Executive for home ownership Andy Kerr said younger people are getting creative when it comes to making their property dreams come true.
“Younger Australians aren’t letting meeting a partner or getting married later in life hold them back from owning a home now. People are definitely looking at their options and casting the net wider when thinking about who they could buy with,” he said.
He also said that despite the rising cost of living and interest rates many first home owners haven’t been deterred from entering the property market, they are just becoming more open to trying new ways of achieving it.
Kerr said regardless of who you were buying with it’s important that you talk about how you’ll jointly save for a deposit, agree on the property and meet ongoing costs.
“As buying a home is the biggest purchase most of us will make, it’s also worth considering getting a solicitor involved for additional comfort,” he said.
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