The Commonwealth Bank has identified a number of key trends in home ownership set to disrupt the Australian housing market over the next decade or so.
The major bank’s
Future Home Insights Series looks at how population growth, urban living forecasts and the rise of multi-unit dwellings will affect the market from now until 2030 and beyond. One of the report’s key results was the emergence of new ways to fund home ownership, including:
- Collaborative buying: Separating a home or apartment into smaller-sized dwellings with shared, common areas
- Group loans: Splitting mortgage costs by partnering with a sibling or friend
- Communities in common: A development with smaller houses or apartments and a shared communal space
- Joint-ventures & syndicates: Pooling funds through a group development model to buy and develop blocks of land
- Guarantor loans: Using property as security to help someone else, typically children or siblings, purchase a home
- Crowd housing: Pooling money together with other parties and giving feedback on the type of property the buyer would like developed in real time
- Staircasing: Incrementally buying ‘shares’ in an individual property in a scheme that allows buyers to pay as much as they can afford
- Guesthousing: Monetising the spare bedroom or couch through sites such as Airbnb in a short or long-term arrangement
“We know these trends will significantly impact how Australians live, buy and sell property. At the same time, these trends could change how lenders meet the needs of Australian home buyers in the future,” said Dan Huggins, executive general manager of home buying at Commonwealth Bank.
It is important to look at current trends and insights and have a clear idea about home ownership, Huggins told
Australian Broker. How these will change the industry depends on whether how established they are now, he added.
“Some of these pathways to home ownership already exist such as guarantor loans, group loans and guesthousing so will not require any change. Others, including crowd housing and staircasing may be more prevalent in the future.”
Huggins concluded, saying that both brokers and lenders need to have a good understanding of the latest products to adequately meet the clients’ home buying needs.
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