One in four Australians have considered buying property with family or friends, a new survey shows.
When asked what was driving this trend, more than two-thirds said affordability was the main driver, followed by wanting to buy a bigger/better property and spreading the financial risk if anything went wrong.
The research, conducted recently by CommBank, found that, unsurprisingly, the rising cost of property and, in turn, the size of the deposit needed are the two most common barriers to property ownership in Australia.
When asked what might prevent potential property buyers from purchasing a home with a friend or family member, the vast majority of respondents said they did have some concerns about putting the relationship under strain/pressure.
Other reasons for not wishing to buy property with a ‘non-traditional’ partner included the complicated process of co-buying and co-owning (43%), while a further one in 10 respondents didn’t know it was possible.
Interestingly, the data revealed that while price is the biggest barrier to entry for potential property buyers, it is also the biggest incentive – with over 60% saying they are worried about being priced out of the market, and more than one third (35%) saying they have a Fear of Missing Out (FOMO).
Australians also feel pressure from friends and family, with 44% of those property buyers who admitted to feeling pressure saying that the push comes from friends/colleagues who have already bought and parents/family who want them to buy.
Pressure to buy combined with rising property prices has led more than one third of Australians (37%) to consider moving interstate or to a regional town to buy property, in search of more affordable options that require less compromise on proximity to work or size of property.
Further, flexible working arrangements introduced during COVID-19, means many Australians now feel comfortable considering moving interstate. According to the data, 45% of those under the age of 40 years said working from home has changed how they think about property.
Those in Victoria have seen the biggest impact on their consideration for a home with an outdoor space, near nature or in a regional area.
The research was conducted in tandem with the bank’s release of its new Property Share scheme, which allows borrowers to split the cost of buying a house with friends or family while keeping their finances, ownership and repayments separate.
Before committing to any shared commercial venture, borrowers are advised to consult with their financial and legal advisors.
