* 9 out of 10 Australians are worried that property prices are becoming unaffordable, according to a survey from finance brokers Savvy.
* Only 1 in 10 of respondents have purchased a property during the COVID-19 pandemic, of those 37.1% were driven by a concern for being left behind in the near future.
* Of those looking to purchase a property at some stage, 28.6% are worried if they don’t buy soon, they might be priced out of the market, but for 27.7% of respondents, prices are already too high.
* Of those surveyed, 26.9% t said they are currently experiencing mortgage stress, devoting over 30% of their household income to mortgage repayments.
* When asked why property has become so out of reach, 26% cited foreign ownership as the reason, followed by record low interest rates at 20.3% and an oversaturated investment market at 18.6%. But prices almost never go down. In this climate shared property investment takes on new relevance.
But buying property in shares has never really been supported by the real estate industry except for those schemes that offer managed investments and charge a fee. These give you no control over your investment and have developed a bad reputation as scammers populate this sector. Nevertheless small property investment clubs or mini-syndicates, managed by the shareholders themselves, will play a significant role in real estate as housing gets further out of the reach of the average wage earner. This can be as small as a few family members. or can be a group of trusted colleagues or friends ‘clubbing together’ to enter the property market.
The Tenant in Common Exchange has been set up to support this hidden niche of property buyers. Discover the Tenant in Common Exchange – helping more people get into property. www.ticx.com.au