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Young homebuyers are not necessarily waiting for a romantic partner to enter the property ladder, with many considering buying a property with someone else, according to new research.
Data sourced from a National Australia Bank (NAB) survey undertaken between November and December 2022 with around 300 Australian adults looking to buy a property revealed that outside of dropping their price range, purchasing a property with another person tops the list of compromises homebuyers aged 18 to 29 are willing to make to enter the market.
Almost a third (31 per cent) of respondents in this age group are willing to buy and rent the property out initially, while 20 per cent said they are willing to move into a sharehouse.
The most common compromise respondents of all ages are willing to make is the amount they are willing to spend and decreasing their price range (41 per cent), while about 1 in 3 would trade off the size of the land, garden, or outdoor space (31 per cent) and 28 per cent would give up their preferred location.
The survey found 1 in 10 are not willing to budge at all on their preferences or wish list.
NAB executive, home ownership, Andy Kerr said younger Australians are becoming creative to enter the property market, with many increasingly also choosing rentvesting — where they purchase in one location and rent in another.
“Younger Australians aren’t letting meeting a partner or getting married later in life hold them back from owning a home now. People are definitely looking at their options and casting the net wider when thinking about who they could buy with,” Mr Kerr said.
“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 [sic]. Buyers are just thinking outside of the box to make it happen.”
Mr Kerr suggested that regardless of who homebuyers purchase with, it is critical to discuss how they will jointly save for a deposit, agree on the property and meet ongoing costs.
“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 concluded.
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