Rising property prices, a higher cost of living, and an ageing population have given rise to a noticeable trend: Intergenerational living, where multiple generations combine resources and share responsibilities to buy or build a home and live together. While it’s a common arrangement in many parts of the world, it’s a relatively new concept in New Zealand. Beyond the financial benefits, living with family offers a chance to build closer relationships and learn valuable life lessons.

Why families buy together

Intergenerational living can be a rewarding way to buy a home in today's challenging market. It offers financial benefits, practical solutions for childcare, an opportunity to build stronger family bonds, and create a supportive living environment.

• Financial savings: Sharing household expenses such as utilities, groceries, and mortgage repayments can make easier for families to budget.
• Home ownership: Combining incomes and deposits improves overall borrowing power, enabling families to buy a home that suits everyone.
• Emotional support: Living together fosters stronger relationships and provides support for elderly parents who may otherwise feel isolated and lonely.
• Childcare: For families with younger children, having grandparents on hand to babysit and provide childcare can be a lifeline.
• Shared responsibilities: Sharing household tasks like cooking and cleaning takes the burden off individual members, making managing the home far easier.
• Quality of life: Having multiple generations living together can bring a sense of security, wellbeing, and mutual support.

How it works

Whether it’s siblings buying together or younger families with older parents, getting advice from a mortgage professional is an important way to avoid any issues in this complex financial transaction. Meet with your mortgage adviser to discuss:

1. Financial assessment: All parties listed on the property title will need to be financially assessed to determine lending capability.
2. Online calculators: Use an online calculator – like this one – to determine how much you can realistically afford to borrow.
3. Deposit savings: Calculate how much deposit you have in combined savings – find out about accessing KiwiSaver if you’re a first home buyer or using equity in an existing home to buy a second home.
4. Legal advice: Successful intergenerational living requires careful planning, clear agreements, and open communication. Work with a solicitor to draw up a property sharing agreement.
5. Mortgage application: Choose the right lender for your situation, get help completing your application, and advice at every step of the process.

Successful intergenerational living

intergenerational living offers a practical and rewarding solution for many families buying homes in New Zealand’s challenging property market. By pooling resources, sharing responsibilities, and providing mutual support, families can enjoy significant financial savings while building closer relationships across generations.

Whether it’s helping younger family members step onto the property ladder or providing care for elderly parents, living together can offer valuable benefits at every stage of life. And, while it may not be for everyone, intergenerational living is a growing trend that’s helping families thrive in the face of rising living costs and property prices.

If you’d like to explore intergenerational living – buying a home with family members – get advice from a mortgage professional, such as those at Mortgage Express. Contact the team today to connect with a mortgage adviser near you and get expert advice about buying a home with family, getting a combined mortgage, and ensuring all parties are legally protected with a property sharing agreement.