‘Property pals’ are proving popular – and the trend is set to get even bigger
A new survey has found that 3.5 million Australians would consider purchasing a home with a friend.
New research from ING reveals that almost half (47 per cent) of Australians have purchased or are considering purchasing a property with a friend, notably someone who is not a spouse or partner.
With the number of potential “property pals” amounting to 3.5 million in total, this concept has been proven to be enticing to many would-be home buyers. Around one in four believes that becoming a property pal would allow them to both share responsibilities and payments with another individual and also benefit from increased flexibility in property locations.
Other motivations for becoming a property pal are varied, with 19 per cent responding that buying with another person would allow them to purchase a bigger home than they could afford on their own, whereas 22 per cent of respondents cited the environmental sustainability of cohabitation compared to living alone.
The practicalities of the property pal arrangement also extend beyond those willing to dwell full-time in the purchased property, with 32.1 per cent saying they would consider entering into the partnership if it was to start building a property portfolio and 29 per cent stating they would consider a “pal” if the property was a holiday home.
Matthew Bowen, head of daily banking at ING Australia, attributed the prevalence of the property pals concept as a reaction to the “upward trajectory” of property prices and costs of living, describing them as “a real sting to many”.
ING said that close to half (46 per cent) of Australians believe that within the next decade this type of home buying will become far more common practice if house prices continue to rise.
Reinforcing this idea, the bank found that 50 per cent of Generation Z Australians are open to becoming property pals.
Bowen acknowledged that while becoming a property pal may help to “reach your property goal quicker than doing it on your own”, he still cautioned that “as with any investment it’s important to consider the risks” in recommending that prospective property pals seek legal and financial advice about ownership before entering any financial commitment.
Nevertheless, Bowen was emphatic that even amid the current housing market, “the great Australian dream of home ownership is not dead – it’s just different”.