Teaming up to buy property
New Zealanders are so keen to buy property that more than half would buy with friends or family, according to a survey by Wizard Home Loans.
Friday, July 14th 2006, 2:01AM
by Maria Scott
This was despite respondents’ awareness of the potential pitfalls.
Asked about the disadvantages of buying with family and friends, the majority said that mixing finances could lead to difficulties in relationships.
Wizard director of national business, John Grant, said: "The rise in property prices over the past few years has driven kiwis to be increasingly savvy about their home ownership strategies."
Lenders needed to be aware of the way that patterns of ownership could change. “As Kiwi society continues to change, we’ll see people choose new ways to buy property. Lenders in New Zealand will need to keep a close eye on changing needs and predict the trends so as not to stifle Kiwis’ property goals.”
Cameron Bagrie, chief economist at ANZ National Bank said that the willingness of so many New Zealanders to consider buying with friends and family was a sign that the housing market was “very lofty”.
But if buyers entered the market by teaming up with friends and family this could help to keep a floor under prices.
Short term gains for such buyers might not be at levels seen in recent years but continued enthusiasm for property purchase meant that prospects over ten or 20 years were still good.
Howard Morley, president of the Real Estate Institute of New Zealand said that joint purchases were not necessarily a sign of desperation over house prices. It was already common for friends to buy holiday homes together and syndicates to purchase investment properties.
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