More Australians are looking to buy homes alongside their friends or siblings due to the fear of missing out
Have you ever considered purchasing a home with a friend or family member? You're not the only one who feels this way. More than a quarter of Australians are considering buying a home with a 'non-traditional' partner due to rising housing costs and FOMO.
The majority of us yearn for a home of our own.
But what should you do if the price of your ideal home appears to be increasing beyond your means?
In order to gain a foot on the housing ladder, more and more young Australians are abandoning the “my” attitude and embracing the “ours” approach.
According to a CommBank poll of 1,000 people conducted throughout the country, a quarter of home buyers have contemplated buying a property with their friends, siblings, or parents due to rising housing affordability issues.
Fear of missing out (FOMO) is also driving this co-ownership attitude, with 35% of respondents confessing to having been bitten by the FOMO bug.
What's the source of the trend?
In a nutshell, housing affordability is a concern for more than 60% of poll respondents, who fear being priced out of the market.
Other reasons for partnering with a friend or family member include the ability to purchase a larger and better property and the ability to divide the financial risk if something goes wrong.
There’s also the added strain of family and friends!
More than four out of ten prospective buyers said they were pressured to buy by friends/colleagues who had previously purchased or their parents/family who wanted them to buy.
Obstacles and problems of co-ownership
So, if buying a home with family or friends is a realistic option, why don’t more individuals take advantage of it?
That’s because there are a lot of obstacles to overcome.
The great majority of responders, for example, expressed anxiety about placing their connection with a family member or friend under stress.
Meanwhile, one out of every ten respondents had no idea that co-ownership with friends or family was an option.
Another stumbling block is the fact that co-buying and co-owning might be a more difficult procedure.
But be assured that if it is possible and appropriate for you, we can assist you in navigating the process, including ensuring that all parties involved are meeting their financial and legal requirements.
Please contact us to discuss your co-buying or guarantor alternatives.
Co-ownership with friends or family, or having a parent act as a guarantor for you, is not for everyone.
However, there are certain folks who could be a good fit.
If you believe this may be you and would like to learn more, please contact us.
We’d be pleased to walk you through a variety of structured alternatives and possibilities, as well as the problems, roadblocks, and traps to be aware of.
If co-buying does not appear to be a good fit for you, we may walk you through a variety of other purchasing options, including federal government programs, that may be more acceptable.
To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at email@example.com
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