First home buyers teaming up to enter market

New research has revealed two thirds of first homebuyers are teaming up with a partner, friend or family member to buy their first property.

The survey, conducted by St George’s Bank, also found first homebuyers are compromising to break in to the highly competitive market, with 5 out of 10 respondents sacrificing location to buy, 46% on the price, and 45% on overall space and size.

General Manager of St George Retail Banking, Ross Miller, says it shows first homebuyers are adapting to changing market conditions.

“Two incomes are better than one so it seems logical for buyers to team up with others if affordability is an issue,” he says.

“By purchasing with your partner, family, or friend, you can make buying a house a lot more affordable and share the costs, including stamp duty and valuation fees.”

The survey of more than 1000 Australians who had bought their first home in the last two years also found 6 out of 10 buyers used a savings plan to put down a deposit.

60% achieved their goal by being frugal with household expenses, 55% cut back on eating out, shopping and holidays, while almost 30% lived with family.

As for how long it took to buy their first property, it took 8% of those surveyed more than 12 months, but for the majority of respondents it was a lot quicker than that.

Almost 8 out of 10 bought a property within six months or less.