Co-Buying Property with Friends or Family: Smart or Risky?

A practical guide to making shared property ownership work without losing your relationships or your money

For many Australians aged 25 to 45, skyrocketing property prices have made traditional home ownership feel out of reach. Enter co-buying, teaming up with friends, siblings, or even parents to pool resources and get a foothold on the property ladder.

It’s a growing trend, but it’s not without its pitfalls. Before you sign on the dotted line together, here’s what you need to know to make co-buying smart, not risky.

Why co-buying is becoming popular

Co-buying property has clear advantages, especially for younger buyers trying to break into the market.

• Increase your borrowing power
  Combining incomes can help you qualify for a larger loan and access properties that might be unaffordable on your own.

• Share the costs
  Deposits, mortgage repayments, maintenance, and utility bills can all be split, easing the financial burden for everyone involved.

• Enter the market sooner
  Instead of saving solo for years, co-buying can fast-track your path to property ownership.

What could go wrong?

While the benefits are tempting, shared ownership comes with real risks that need careful planning.

• Unequal contributions
  If one person pays more towards the deposit or mortgage, how is that reflected in ownership shares and eventual profits?

• Life changes
  Relationships, careers, and goals evolve. What happens if one co-owner wants to sell, move overseas, or can no longer contribute financially?

• Relationship strain
  Money matters can quickly sour friendships or family ties if expectations aren’t clear from the outset.

Six steps to co-buy property the smart way

Here’s how to protect both your investment and your relationships.

1. Have the hard conversations early

Discuss financial goals, timelines, and potential scenarios. Are you buying to live together, rent out the property, or hold it short-term? Are you in for three years, five, or longer?

2. Choose the right ownership structure

You’ll typically choose between:

• Joint tenants — Equal ownership; property automatically passes to the other co-owner if one dies.

• Tenants in common — Ownership shares can be split unequally (e.g. 60/40); co-owners can sell their share independently.

Most co-buyers opt for tenants in common for flexibility.

3. Put a co-ownership agreement in writing

A solicitor can draft a legally binding agreement covering:

• Ownership shares and contributions

• How expenses will be handled

• Exit strategy (how and when someone can sell)

• Dispute resolution process

4. Set up a shared expenses system

Consider a joint bank account for mortgage and bills, or use expense-tracking apps like Splitwise or Beem It to keep everything transparent.

5. Get independent legal and financial advice

Each person should have their own lawyer and financial adviser to ensure their interests are protected.

6. Review your agreement regularly

Life changes — so check in annually to make sure everyone is still aligned on the plan.

Real story: How Emma and Tom made it work

Emma (32) and Tom (34), long-time friends from Brisbane, bought a two-bedroom apartment together in 2022. Emma contributed 60% of the deposit, Tom 40%. They agreed on a five-year plan and signed a co-ownership agreement with clear terms for an early sale.

“Having everything in writing removed so much stress,” Emma says. “We still get along because we were upfront from day one.”

The bottom line

Co-buying can be a smart way to enter the property market sooner, but success depends on clear agreements and open communication. By planning ahead, you can build wealth and preserve your relationships.

Thinking about co-buying? Speak with a property solicitor or financial adviser to help structure the arrangement safely — so you can enjoy both bricks and friendship for years to come.

Ready to Start the Conversation?

If you’re considering co-buying property with friends or family, we’re here to help. At Financial Wellness Hub, we’re offering complimentary 20-minute sessions (available until 20 May) to help buyers:

• Review mortgage options

• Plan debt management strategies

• Map out a clear path to future financial success

It’s a no-pressure, one-off chat designed to give you clarity and confidence as you take your next steps.

Book your complimentary session here: book your place

By Brett Tarlington