Home magazine: First home buyers are doubling their chances of buying a house

December 5, 2015 11:00am

JARRAD BEVAN – Mercury

Twins Elke, left, and Ali Parker, 27, of Blackmans Bay, have a joint mortgage. Picture: SAM ROSEWARNE

BREAKING into the property market can be daunting, but Tasmanians are finding a new way to ease their house-buying anxiety.

Twins Alice and Elke Parker, 27, joined forces on a mortgage to buy their first home in Blackmans Bay.

Elke said it was the best way to get their foot in the door of the housing market, that they could afford what they wanted a little easier this way, plus they liked the idea of living together.

“We hadn’t planned on buying a house. However, we were heading overseas and thought maybe we should look into buying a house so that we would be paying our own mortgage off — instead of renting — and it all started from there,” Elke said.

“Maybe one month later we had signed a contract.”

The number of joint mortgages in Tasmania has increased by 10 per cent during the past seven years, according to the ING Direct Spring Buyers Guide.

While this type of approach is gaining momentum in Tasmania, the twins said they were the first from their family and friends groups to travel this path.

Alice said they found that not every bank was open to the idea.

“One bank wasn’t willing to give us a combined loan as we are sisters and not partners — the amount they offered us was what we needed for one person,” Alice said.

Being twins, it’s a pretty safe bet to assume the ladies were looking for similar features from their home — or was it?

“We are very similar and were looking for the same things, really,” Alice said.

“We were looking for somewhere in the Blackmans Bay/Kingston Beach area, preferably with water views. Also, we were looking for a newer property as we weren’t keen on doing renovations, even though we love watching The Block.”

Elke said three bedrooms was a must.

“We wanted a low maintenance garden and ideally a house with two bathrooms,” Elke said.

ING’s executive director of customers John Arnott said that the rise in co-mortgages was in line with the 1.5 per cent rise in Hobart home values over the past year.

John said that as housing prices became more expensive Australians had increasingly teamed up with a friend or family member to make their home ownership dreams a reality.

“This type of arrangement can enable buyers to ensure they have enough cash for a deposit and can comfortably stay on top of repayments,” he said.

Nest Property agent Todd Pepper said there were advantages and disadvantages to buying a home with someone other than your partner.

He said buying with someone else meant home buyers were able to buy sooner by pooling resources.

“It means that they are most likely going to buy a better property or one in a better location than they would have done by buying on their own,” Todd said.

“They are also able to share expenses.”

However, Todd warned that sometimes life moved in unexpected directions.

“If you choose to buy with someone who is not a life partner, at some stage they may want to sell out,” he said.

“It may cause issues with the friendship.

“It would be a good idea to have some serious discussions around expectations prior to entering into such a relationship.”

Nest Property partner Rod Force said if a shared housing situation turned sour; a house may have to be sold to “wind things up”.

“The safest option is to make sure the arrangement is as likely as possible to be a stable one,” Rod said.

“Hopefully such arrangements last long enough for both parties to get some capital gain out of the property over time.

“I haven’t noticed that this sort of thing is becoming more common, but it may happen that way as properties in the city become somewhat unaffordable for many people.”

Now that their first investment together has worked out perfectly, the twins have been able to dream about the future.

Alice said they can imagine sharing another mortgage.

“We have always wanted to buy a shack together,” Alice said.

“Definitely,” Elke agreed. “I’d love to own a shack with Ali in the future; it won’t be for a while but hopefully one day.”

How to break into the market

– Share the responsibility with a friend or family member.

– Get a guarantor.

– Set a goal for your deposit then save, save, save in a high interest savings account.

– Enjoy the dream while window shopping, then buy a house that you can actually afford — start small and work your way up.

The Mercury