With a little help from their friends, young Australians are able to get their foot on the property ladder.
A new study by the National Australia Bank (NAB) found that 40% of young Australians are thinking about buying a home with someone other than their partner.
Young Australians between the ages of 18 and 29 who are interested in entering the housing market are willing to make a number of concessions, the most significant of which is the reduction of their price range.
Nearly one third are open to purchasing the home and renting it out in the beginning, and twenty percent are interested in moving into a house with roommates.
The findings of the NAB research also include:
The amount of money that buyers of all ages are willing to spend is the compromise that buyers of all ages are most likely to be willing to make (41%); approximately one in three buyers would be willing to trade off the size of the land, garden, or outdoor space (31%); approximately 28% would be willing to give up their preferred location; one in ten buyers are not willing to budge at all on their wish list.
Andy Kerr, an executive at NAB in charge of home ownership, has observed that younger people are becoming more resourceful in their efforts to make their real estate dreams come true.
"Younger Australians don't let the fact that they might not get married or find a partner right away stop them from buying a house sooner rather than later. When people think about who they could buy from, they are definitely considering all of their options and trying to cast a wider net, according to Mr. Kerr.
"Rentvesting" is another trend that is slowly gaining popularity. It means buying a property in one area and renting it out in another.
"It is interesting to note that our data demonstrates that first-time home buyers are not being dissuaded from entering the property market, despite the fact that the market as a whole is becoming less competitive and the cost of living is increasing. Buyers are simply considering non-traditional options in order to make it happen”, He said.
According to Mr. Kerr, it does not matter who you are buying with because it is essential that you talk about how you will jointly save for a deposit, agree on the property, and meet ongoing costs. He said this is important regardless of who you are buying from.
"Since buying a home is the biggest purchase most of us will make in our lives, it's also a good idea to think about involving a solicitor in the deal for extra peace of mind," he said.
"From our point of view, we are able to instil confidence regarding the process of obtaining a home loan approval in a timely manner.
"Because we've made it easier for people to apply for home loans, we can now give a decision to about half of NAB's eligible customers within 24 hours." Approximately thirty percent of those are getting unconditional approval within an hour, and some of them are getting it within fifteen minutes—that's faster than getting your internet set up in the new home.
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