Australia's younger generations may be finding their own solutions to property ownership rather than waiting for governments and others to overcome the affordability crisis.
Leading property analyst Resolution Research & Marketing Solutions says co-ownership with family or friends is an emerging trend.
Resolution managing director Diana Howes says co-ownership certainly makes sense.
"Young people are already used to sharing accommodation and splitting the rental money required and other associated costs like electricity bills," Ms Howes said.
"Co-ownership strategies are real initiatives and a recognition by young people that their own actions provide the greatest change of gaining an initial foothold in the property market.
"It also is consistent with the general behavioural characteristics of this market segment where they take responsibility for their own actions."
Now business is also catching on to the trend, according to Resolution's annual property analysis publication, Clarity 08.
Clarity details the actions of at least one company that recently began providing a straightforward legal framework covering all bases so two or more purchasers can buy a single property.
"It's similar to what a prenuptial is to a marriage," Ms Howes said.
"The parties contract to own a property as ‘tenants in common'."
According to Howes, the new legal product is a standardised, simple legal framework that is inexpensive and easy to access. At the same time, the promoters ‘value add' by also offering conveyancing and finance services through associated lenders.
At between $250 and $370 per person it appeals to the younger generation which, she said, is wary of the previous and historically expensive arrangements organised by lawyers and others.
Ms Howes said developers who forged relationships with the new age suppliers could earn very worthwhile results, particularly if they also developed property designs that appealed to co-ownership ideals.
She also said developers should be very aware that the younger generation is somewhat contradictory in their attitudes to ‘brands'.
"They might make an emotional attachment with a developer perceived to be socially conscious and environmentally responsible.
"On the other hand, they would quickly drop a supplier who was seen to be trying to act ‘cool' for the sake of being so."
They also like what is known as the "suburban and coke" project, which Ms Howes said can be defined as property development projects generally within 5-10km of the CBD and priced between $300,000 and $630,000 but with minimal body corporate fees.
"They like good planning," she said. "Size to them is less important than good location. And fast and efficient access to public transport and green spaces or gymnasiums is vital. So, too, is a nearby high street with restaurants, cafés, bars and potentially some higher-end retail outlets."
Resolution Research and Marketing is an independent residential property and research company that work with both private and public sector development companies and local governments for project planning and market delivery.
