New research from NAB has found 40 per cent of young Australians would consider buying property with someone other than a romantic partner as a way to get their foot on the property ladder.
The survey, which polled Australians aged 18 to 29, found that outside of price considerations, teaming up with a family member or friend was the most likely compromise young buyers would elect if it meant securing a property.
A total of 41 per cent of respondents indicated price was the biggest compromise they were willing to make.
NAB Executive, Home Ownership Andy Kerr said the responses were a sign that younger people were willing to get creative in order to crack the market.
“Younger Australians aren’t letting meeting a partner or getting married later in life hold them back from owning a home now,” Mr Kerr said.
“People are definitely looking at their options and casting the net wider when thinking about who they could buy with,” Mr Kerr said.
Many (31 per cent) would consider giving up a few square metres of land size, or opting for a smaller garden or outdoor space.
Searching outside of their preferred location was selected by 28 per cent of respondents.
Almost a third are willing to rentvest – that is buy and rent the property out initially.
“Rentvesting – purchasing in one location and then renting in another – is another trend that is creeping up in popularity,” Mr Kerr said.
Meanwhile, a whopping 20 per cent indicated they would consider moving into a share house if it meant they could make mortgage repayments.
Only 10 per cent of respondents indicated they were unwilling to make any compromises during their property search.
Buyers not giving up
Mr Kerr said the data indicated buyers weren’t giving up on owning a property.
“Interestingly, our data shows that first-home buyers aren’t being deterred from entering the property market, despite the market softening overall and rising cost-of-living,” he said.
“Buyers are just thinking outside of the box to make it happen.”
Mr Kerr said buyers considering pairing with a friend or family member should set a framework and consider getting legal advice.
“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.
It was also important that co-purchasers have a clear idea of how the deposit, purchase costs and ongoing maintenance costs would be shared.
Financing to first-home buyers has fallen
The survey data comes after figures from the Australian Bureau of Statistics showed a sharp decline in lending to first-time buyers in 2022.
The ABS’ latest household lending update, for the November quarter, suggests that first-home buyer activity fell during 2022.
The number of new loan commitments to owner-occupier first-home buyers fell 5.5 per cent in November 2022, driving the overall fall in owner-occupier lending.
First-home buyer loans in November were 51 per cent below their January 2021 peak and 16 per cent below the February 2020 pre-pandemic level, the ABS reported.