Young first home buyers are teaming up to get on the property ladder sooner, a new study suggests.
NAB data shows that joint home loans to friends or family who are buying together are up over 33 per cent across the past 12 months, with the highest growth reported in Victoria (up 47 per cent), South Australia (37 per cent), and New South Wales (34 per cent).
NAB Home Lending Executive Felix Sekulla says with lower rates and confidence in the market returning, more buyers are looking to re-enter the market.
“For several years, higher interest rates kept many would-be buyers on the sidelines”, Sekulla said.
“With confidence in the market improving, helped in part by lower rates and more support available through various first-home buyer schemes, many Australians are back looking for their dream home.
“Buying with someone you trust, such as a close friend or family member, might not be the right strategy for everyone, but for many, this allows them to buy sooner, or buy in an area they might not be able to afford on their own”, he noted, adding that many first-home buyers are getting creative in their search, exploring various paths to homeownership.
“Some are teaming up with family or friends to purchase together, sharing the financial responsibility to crack the market sooner.
“Others are opting to rent-vest, continuing to rent where they want to live while buying in a more affordable location.
“Many are also broadening their search, considering townhouses instead of standalone houses or looking at different suburbs to find better value”, he concluded.