Buying a home is indeed a huge investment, and in Australia an increasing number of youngsters prefer to collaborate with friends and other family members to enter the property market.
Property search engine Realestate.co.au recently conducted a survey which showed that close to 72 percent of younger respondents were willing to share the purchase of a home with a family member or friend.
"Gen Y is very big on collaboration," social demographer Bernard Salt told the Herald Sun. "Baby boomers were married at 21 or 22; they only ever knew life as a couple, whereas if you're not getting married until 29 or 30, you tend to form very strong friendships in your 20s. You're much more comfortable in the company of friends, therefore collaborating on holidays, or even home-buying all seems to be wrapped up in the same logic."
These youngsters are also upbeat about the property market in general and their ability to buy a house in the next 12 months, the Housing Affordability and Sentiment Index by Realestate.com.au showed.
Buyers between 25 and 30 are optimistic about housing affordability and are considering options such as buying their first property as an investment, Realestate.com.au chief product officer Henry Ruiz told the paper.
"Purchasing an investment property can be a more affordable way ... to jump into the property market," Ruiz said. "Having a tenant pay rent can cover the majority of mortgage repayments, making property ownership a lot more affordable."
Recent reports too point to the fact that affordability is at its best since 2003.
An improvement in housing affordability has continued unabated for several months, said the Housing Industry Association. "Excluding the global financial crisis period when interest rates dropped sharply, housing affordability is at its healthiest level since 2003," HIA chief economist, Dr Harley Dale said in a statement.
"That is heartening news for Australian households. Now is a great time to buy for those who are financially set to take that decision," Dale said.
