Purchasing a house with someone other than your husband, wife, or partner is becoming an increasingly considered norm as housing affordability becomes a growing concern.
Recent research by ING Australia indicates that nearly half of the survey respondents see co-buying properties with a ‘property pal’ as a possible norm if the upward trend in property prices persists.
The research points to a generational divide, with Gen Z respondents being the most open to co-ownership, while Millennials and Gen Xers show more reservation.
Generational Shifts Toward Collective Property Investments
Many find the concept of co-ownership appealing for reasons such as sharing financial responsibilities, having flexibility in location choice, acquiring larger properties, and the potential for reduced environmental impact.
The idea is also gaining traction among individuals looking to expand their investment portfolio or acquire holiday homes through collective buying power.
ING’s Matt Bowen highlights that while the ‘property pals’ approach can provide an earlier entry into home ownership, it also introduces new risks that require careful planning and consultation with financial experts.
It’s crucial for co-buyers to seek legal and financial advice, set clear terms for the property’s future, and understand the joint responsibilities of mortgage repayments.
Technological Aid in Co-Ownership Ventures
Innovation such as the Co-operty app is emerging to assist property pals in buying and managing a property collectively, streamlining the process with digital tools and professional guidance.
Co-founder of Co-operty Lynda Coker expresses optimism that co-ownership can play a key role in mitigating the housing affordability crisis by reducing individual financial burdens.
