Saving for a home

How buying with a mate could open the door to home ownership

Aussies are increasingly open to being Property Pals

Owning a home is a long-held Aussie dream. But with rising property prices, making it reality is becoming harder by the day. That’s where the new Property Pals movement could help you and your mate get on the ladder and into a home sooner.

Over 3.5 million potential Property Pals nationwide

Despite the sting of rising costs, the Aussie dream of owning a home is alive and well.

ING-commissioned research reveals it’s evolving, however, with the concept of shared ownership becoming increasingly attractive to aspiring homeowners and investors.

In fact, almost half of existing Aussie homeowners and seekers (47% to be exact)* are open
to the idea of purchasing with a friend – aka a ‘Property Pal’ – other than a spouse or partner.

That adds up to around 3.5 million potential Property Pals across the nation.

A lighter (potentially bigger!) way to own

One of the big attractions of becoming Property Pals is the ability to share the load, with 1 in 4 liking the idea of splitting responsibilities and repayments to lighten the financial burden.

It’s also about space, with a fifth of potential Property Pals say teaming up gives them more buying power which could mean snagging a bigger place than they could otherwise afford.

An easier path to investing

The benefits of shared ownership can also extend beyond just buying a pad to live in.

Some Aussies see Property Pals as a smart way to kickstart a property portfolio, with 32% saying they’d consider shared ownership as a way to purchase an investment property.

While a chillaxed 29% would do it for a holiday home.

Protecting yourself and your pals

Like any financial arrangement, shared ownership isn’t something you should rush into.

Open communication, a well-thought-out plan and clear written agreement are fundamental foundations for a successful partnership.

To protect you, it’s vital to seek independent professional legal and financial advice so you understand your ownership options and any potential risks.

To protect your friendship, it’s important to establish clear agreements about future scenarios, such as selling the property, so you can avoid conflict down the road.

Finally, of course, understanding home loans options and ensuring all parties are committed to making repayments is also essential for a profitable Property Pal partnership.