Ever thought about buying a property with a friend or family member? You’re not the only one. The rising cost of property and FOMO has led to more than a quarter of Australians considering buying a property with a ‘non-traditional’ partner.
Most of us long for a place to call our own.
But what do you do if the price of your dream home seems to be rising out of reach?
Well, more and more young Australians are shedding the “mine” mentality, and adopting the “ours” approach in order to get a foot on the property ladder.
In fact, according to a 1,000 person nationwide survey by CommBank, a quarter of home buyers have considered buying a property with their mates, siblings or parents because of increasing concerns about housing affordability.
And this co-ownership mentality is being strongly driven by the fear of missing out (FOMO), with 35% of respondents admitting to being bitten by the FOMO bug.
What’s driving the trend?
In a nutshell: housing affordability, with more than 60% of survey respondents worried about being priced out of the market.
Other driving factors for teaming up with a mate or family member include being able to buy a bigger and better property, as well as spreading the financial risk if anything goes wrong.
And then there’s additional pressure from family and friends!
More than 4-in-10 prospective buyers admitted to feeling pressure from friends/colleagues who have already bought, or their parents/family who want them to buy.
Co-ownership hurdles and challenges
So, if purchasing a property with family or friends is a viable option, why don’t more people do it?
Well, that’s because there are a number of challenges involved.
For example, the vast majority of respondents said they harboured concerns about putting their relationship with a family/friend under strain/pressure.
Meanwhile, 1-in-10 respondents didn’t even know co-ownership with friends or family was possible.