Posted on | June 10, 2009 |
With affordability at its lowest level on record, first-home buyers have to think outside the square.
The home-ownership dream rarely used to feature a sibling in your bathtub and a parent on your certificate of title. But these days, first-home buyers are prepared to be flexible.
Housing affordability fell to record lows in the March quarter this year according to the latest Housing Industry Association-Commonwealth Bank report. Mortgage payments now account for 30.7 per cent of total first-home buyer income!
Generations X and Y are also settling down later meaning for many home ownership is a solo battle.
It is not surprising, then, that increasing numbers of first-home buyers are teaming up with siblings, parents or friends in a bid to break into the property market.
“There has been a noticeable trend towards family members buying property together, as property prices are still very high, particularly for first-home buyers,” says Aussie Home Loans boss John Symond.
The number of family members taking out mortgages together has jumped from about 1 per cent of all loans originated by Aussie to 5 per cent over the past two years, Symond says. Mortgage Choice has reported a similar trend. A survey carried out by the company last year revealed that more than 6 per cent of people who bought property within the past two years had done so with family or friends. And of those who intended to buy property within the next two years, more than 8 per cent intended to do so with family or friends.