Property Pals: 3.5 million Aussies open to buying a home with friends, new research reveals

A recent study by ING has unveiled a new trend in home ownership, with millions of Australians considering purchasing a property with a friend, dubbed “Property Pals.” The research found that 47% of Aussies who have purchased or are considering purchasing a property with someone other than a spouse or partner would consider buying with a friend, equating to approximately 3.5 million Australians.

The trend appears to be driven by rising house prices, with nearly half (46%) of Aussies believing that buying a home with a friend will become common practice in the next decade if property values continue to climb. Younger generations are the most open to the idea, with 50% of Gen Z, 35% of Millennials, 28% of Gen X, and 14% of Baby Boomers considering becoming Property Pals.

The appeal of shared home ownership lies in the ability to share responsibilities and payments with someone else, as well as having more flexibility in property locations, according to around one in four respondents. Additionally, 19% of Aussies believe that buying with someone else will allow them to purchase a bigger home than they could afford on their own, while 22% consider it a more sustainable and environmentally friendly option than living alone.

Interestingly, the research also found that 32% of Aussies would consider shared ownership to start building a property portfolio, and 29% would consider it for a holiday home.

Matt Bowen, Head of Daily Banking at ING Australia, commented on the findings, stating, “Property prices have been on an upward trajectory for some time now and the costs of living are proving a real sting for many. But despite this, the great Australian dream of homeownership is not dead – it’s just different. As this research has shown, young Australians are being smart about how they reach their property goals by exploring the Property Pals concept.”

Bowen also cautioned potential Property Pals to consider the risks and seek legal and financial advice before entering any financial commitment. He emphasized the importance of formalizing the mechanics for future possibilities, such as what will happen if one person wants to sell, and being aware that both parties are accountable for repaying the loan.

“Talk to your broker or talk to your bank to make sure you’re going into it with a good plan for a successful outcome,” Bowen advised.