Millennials, Gen Z turn to friends to help get a foot on the property ladder
- 40% of young Aussies may look to purchase a property with friends over a significant other.
- 41% of buyers across all age groups identify a willingness to alter price range when looking to purchase a property.
- 31% of buyers would trade off the size of the land, garden or outdoor space to enter the market while 28% would give up their preferred location.
New NAB research outlining the compromises Australians are willing to take to enter the property market has revealed 40% of Aussies aged 18-29 would consider purchasing with friends rather than a significant other.
Further, the largest compromise across buyers of all age groups is price, with 43% of young Aussies willing to reign in the amount they are willing to spend on their first home.
By reigning in price, NAB detailed 31% of buyers would trade off the size of the land, garden or outdoor space, while 28% would give up their preferred location.
NAB Executive Home Ownership Andy Kerr said younger people are getting creative when it comes to making their property dreams come true.
“Younger Australians aren’t letting meeting a partner or getting married later in life hold them back from owning a home now,” Mr Kerr said.
“People are definitely looking at their options and casting the net wider when thinking about who they could buy with.”
Mr Kerr detailed rentvesting – purchasing in one location and then renting in another – is another trend that is creeping up in popularity.
“Interestingly, NAB 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,” he said.
“Buyers are just thinking outside of the box to make it happen.”
ABS data echoes this, detailing that the number of first home buyers has remained consistent since September 2022 despite consecutive interest rate increases.
Mr Kerr said regardless of who you are buying with it’s important that you talk about how you’ll 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 said.
Read more: Should you buy a property with friends or family?
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
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| Promoted | Disclosure | ||||||||||
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| Promoted | Disclosure | ||||||||||
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| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
