Young Australians are combating increased property prices by pooling their resources and buying with friends.
National Australia Bank (NAB) data shows 40% are considering buying a property with someone other than a romantic partner.
One of the main compromises those aged 18 to 29 are prepared to make to get into the market is to buy with friends, second only to reducing the amount they are willing to spend.
NAB executive for home ownership, Andy Kerr, says younger people are becoming more creative when it comes to being able to buy property.
Almost a third of respondents were also prepared to become “rentvestors” – buying an investment property while continuing to rent their home in a desired location.
Kerr says younger Australians are casting the net wider when thinking about who they could buy with.
“Our 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. Buyers are just thinking outside of the box to make it happen.”
While pooling resources can be a good way to enter the market, Kerr warns prospective buyers to ensure they have a solid agreement about how the asset will be handled.