Co-ownership 'makes property buying more affordable'

Friday 26 February 2010

Article by Mozo

A growing number of Australians are choosing to share the costs of home ownership by buying property with their friends and family, it has been revealed.

Mortgage Choice senior corporate affairs manager Kristy Sheppard told the Australian that co-ownership is increasingly popular among "de facto couples" including family and friends who want to help each other meet stricter property lending criteria and higher property prices.

According to a survey conducted by Mortgage Choice last year, 72 per cent of respondents who were planning to purchase a home before 2012 said they would not be buying alone.

Co-ownership may be a worthwhile consideration for Australians who decide to compare home loans in search of the best deals.

Ms Sheppard said: "It is a strategy that enables potential buyers to pool their money for a deposit and utilise their borrowing power to get a loan. Co-owners can split the cost of the property and all the associated expenses, so that repayments are noticeably less than what you’d pay if you were buying solo."

This week, National Australia Bank announced that it is considering plans to begin pricing residential mortgages according to the risk profile of individual borrowers.

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