Could ‘the bank of family and friends’ get you on the property ladder?
With no end of affordability issues in sight, social funding is being touted as a new way for aspiring Australian property owners to get a foot firmly on the ladder.
MyBrix, a property financing platform, has revealed a new concept called Social Funding, which allows individuals to buy property by leaning on family and friends – rather than a traditional bank.
While the traditional method of purchasing a home requires saving a large deposit and securing a home loan, MyBrix is looking to upend that model, developing a transparent platform it says “revolutionises the way people think about property investment.
Social Funding enables individuals to tap into their social network – inclusive of family and friends – to collectively fund 100 per cent of their property purchase – and removing the need for a traditional bank loan.
Brian Stevens, the founder and CEO of MyBrix, expressed the belief “that everyone should have the opportunity to own a home, regardless of their financial situation”.
He explained that Social Funding “empower[s] individuals to take control of their property ownership journey and build wealth within their social circle, rather than feeding the profits of traditional banks”.
Touting that the Social Funding approach can potentially save would-be buyers “thousands of dollars on interest payments” and jump hurdles such as serviceability or credit checks, Stevens said it offers an alternative path to property ownership – and can even allow participants to pay off their property sooner.
“With Social Funding, we are revolutionising the Australian real estate market enabling first home buyers get into the market with a little help from their friends and family,” he reiterated.