In response to the escalating housing affordability crisis, many friends and siblings are opting to purchase their first homes together. An example of this trend can be seen through the partnership of best mates and tradies, Ben Gannon and Josh Le Maitre, who bought a house in Melbourne last November with the goal of renovating it. Their project is progressing well, although they acknowledge the kitchen remains to be updated.
Gannon and Le Maitre utilised a home loan option known as Property Share, enabling multiple parties to co-own a property while maintaining separate mortgages. This arrangement allows a diverse range of co-owners, including friends, siblings, or couples, contributing to a flexible and collaborative home-buying experience. The financial obligations for each owner can differ, featuring both fixed and variable interest rates as per their individual agreements.
However, a key aspect of the Property Share model is that co-owners act as guarantors for one another, ensuring responsibility for the financial commitment if one party is unable to meet their obligations. Le Maitre expressed confidence in their partnership, highlighting their trust built over years of friendship, and noted that their living arrangement has been smooth so far.
This innovative financing option is gaining traction primarily among first-time home buyers, but it is also attracting parents looking to support their adult children in property ownership. Michael Baumann, the Commonwealth Bank’s executive general manager of home buying, remarked that the current housing landscape necessitates creative solutions for aspiring homeowners to enter the market.
With changing financial situations being a reality, the bank encourages potential buyers to obtain independent legal advice, reassuring them that collaboratively investing in property can allow earlier access to the housing market. Gannon and Le Maitre, both currently single, view their decision as a strategic opportunity and plan to evaluate their situation annually.
Overall, this cooperative approach to home purchasing not only addresses financial barriers but also fosters a sense of community and partnership among friends and family.