BUYING real estate is becoming even more of a family affair with estate agents reporting an increase in siblings co-financing mortgages.

Agents say brothers and sisters purchasing together now make up 10 per cent of traffic at open houses and inspections.

The trend, which has grown in the last three months, allows buyers to afford mortgages that would otherwise be beyond their reach on a single-income, agent Silvia Vitale of Laing + Simmons Potts Point said.

“It is how they’re affording to break into the property market,” she said.

Ms Vitale said that siblings were buying mostly for investment purchases.

“It’s almost like running a small business,” she said.

Oceanfront units around Cronulla which are selling for between $500,000 and $600,000 were popular among sibling investors wanting to secure property together, Highland Property Agents director David Highland said, adding: “It gives people an opportunity to buy into Cronulla or a desirable coastal suburb that they wouldn’t be able to otherwise afford.”

Forsyth principal James Snodgrass said entering a mortgage with siblings or friends also helped would-be buyers escape the rental trap. “For young families trying to pay rent and get some equity to buy their own property, life can be hard,” he said.

“So what they’re doing is teaming together with two to three other parties who put equity into a purchase.”

“One of the parties actually leases the property, pays market rent and renovates as they go along, then at the end there is capital growth that is then split between the parties.”

Posted by Brittany Stack – The Sunday Telegraph on 27th January, 2013