Australians are ignoring warnings about entering into joint property ownership with friends or family, a lender says.

The warning follows the release of data by direct lender MyRate.com.au showing a 300 per cent rise in the share of properties brought by groups of friends or family over the past six months.

MyRate.com.au managing director Kevin Sherman said the increase in joint ownership had been spurred by the gradual phasing out of the boost to the first home owners grant from October 1.

Tighter criteria for lending had also played a part in the rise of joint buying.
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By Jill Fraser for Lending Central

The CBA and Mortgage Choice have both jumped on the bandwagon this year with a focus on tenants in common and it’s anticipated that RAMS, which is currently “looking into the issue”, will soon follow suit.

Jeremy Levitt, Director PodProperty, a company that facilitates co-ownership agreements, says stricter lending criteria and insecurity about employment are powerful catalysts for co-ownership arrangements.

Property co-ownership refers to a situation where two or more people share the ownership of a property. Put simply, it entails:

• Pooling your money with others to put a deposit down on a home;
• Combining your borrowing power to borrow the rest from a loan provider;
• Paying off the mortgage on your home instead of paying rent (for Owner Occupiers) or earning a stream of rental income (for Investors);
• Having the flexibility to move out or sell out if you need or want to.

PodProperty is witnessing a 12% to15% growth month on month and the figure is escalating. This is due in part to a number of excellent distribution deals - partners include the Commonwealth Bank, Mortgage Choice, Wizard Home Loans and Defence Housing Australia.
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My Property Partner launches today as a new social networking solution to assist property buyers struggling to buy alone.

As more and more buyers are left out of the property market due to the housing affordability crisis, many are considering the options of co-ownership but don’t have a partner, friend or family member to co-buy or co-invest with.

My Property Partner is an exciting new social networking community designed to help property buyers enter the market and cut the costs of real estate ownership.
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The rise of co-ownership and joint-borrowing.

Faced with stricter lending criteria yet keen to take advantage of positive property market factors such as low interest rates and increased government incentives, Australia’s potential buyers are increasingly looking for ways to secure finance approval sooner.

However, many are unaware of their ability to co-borrow with someone other than a romantic partner or the possibility of using a guarantor to secure their home loan.
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