Many would consider buying house with family

Many people would buy property with friends or family, according to a survey.

The rise in property prices had driven people to be more aware about their home ownership strategies, said Wizard Home Loans director of national business John Grant, whose company commissioned the survey.

It found 34 per cent of people said they would buy with family, 5 per cent said they would buy with friends, and 15 per cent said they would commit to a property purchase with friends or family.

"While family is the firm favourite, our survey shows that one in five Kiwis would buy a property with friends," Mr Grant said.

"That's a significant change to the way people are viewing property ownership."

More than 1500 New Zealanders were surveyed and asked who they would choose if buying with someone other than their partner. They were also asked to comment on the advantages and disadvantages of the strategy.

Almost half (47 per cent) said buying with friends or family was an opportunity to buy a home when it may not otherwise have been affordable. And 44 per cent said it meant the cost and responsibility of owning a home could be spread among more people.

"Affordability is a key driver of this strategy. A third of the people we surveyed said buying with friends or family means you can afford a better property than if buying on your own," Mr Grant said.

"Given New Zealand's changing demographic make-up, for example people getting married later, higher separation rates etc, buying with family and friends can be a viable option for people on one income."

When asked about the disadvantages of buying with family and friends, an overwhelming majority pointed to the potential to cause relationship problems.

"Four in five people said a key disadvantage of this strategy is that mixing finances with family or friends can lead to relationship strife," said Mr Grant.

"What's more, over half said the risk of a friend or family member not paying their share of the mortgage repayments is a key disadvantage."

People needed to consider many things before choosing to buy with a friend, or even a family member, he said.

"While it's not essential to have a legal agreement ... it's strongly advised."

- NZPA