3.5M Aussies would consider purchasing a home with a friend

New research by ING reveals the latest home ownership trend with millions of Aussies tempted to become “Property Pals”.

Almost half (47%) of Aussies who have purchased, or are considering purchasing a property, with someone who is not a spouse or partner (Property Pals), say they’d consider buying with a friend – which equates to an estimated 3.5 million Australians. Close to half (46%) of Aussies believe that in the next decade, this type of home-buying will become common practice if house prices continue to rise.

Of the generations, younger Aussies are the most open to becoming Property Pals, with Gen Z the most likely (50%), compared to Millennials (35%), Gen X (28%), and Baby Boomers (14%).

According to the research, the rising trend is appealing to plenty of Aussies, with around one in four saying that becoming a Property Pal allows them to share responsibilities and payments with someone else, and to have more flexibility in property locations.

And apparently, size is everything for one in five of the Property Pals, as 19% say buying with someone else will allow them to purchase a bigger home than they could afford on their own. Similarly 22% of respondents say they would consider buying with someone else as it is a more sustainable and environmentally friendly option than living alone.

Many Aussies would consider shared ownership to build a property portfolio

While not all Aussies want to buy a home to live in with someone who is not their spouse or partner, 32%1 say they would consider it if it was to start building a property portfolio. Furthermore, 29% say they’d consider doing so if the property was a holiday home.

Matt Bowen, Head of Consumer and Market Insights ING Australia, comments on the report findings: 

Property prices have been on an upward trajectory for some time now and the costs of living are proving a real sting for many. But despite this, the great Australian dream of home ownership is not dead – it’s just different.

“As this research has shown, young Australians are being smart about how they reach their property goals by exploring the Property Pals concept.

“While you may reach your property goal quicker than doing it on your own, as with any investment it’s important to consider the risks. 

“There are a few things we’d encourage anyone to consider before purchasing with a friend. Make sure you seek legal and financial advice about ownership options before entering any financial commitment. You should also formalise the mechanics for future possibilities – for example, what will happen if one of you wants to sell?

“Do your research about your mortgage options and be aware that you’re both accountable for repaying the loan. If one person can’t make their repayments, the other may need to chip in.

“Talk to your broker or talk to your bank to make sure you’re going into it with a good plan for a successful outcome.”