The Pros and Cons of Buying with Family or Friends
With property prices continuing to rise and the cost of living stretching household budgets, more Australians are considering buying property with family or friends as a way to get onto the property ladder or build an investment portfolio sooner.
Whether it’s siblings buying their first home together, friends purchasing an investment property, or parents co-signing with children, co-ownership is becoming a practical solution to a growing affordability issue.
But while pooling resources can offer great benefits, it also comes with risks and complexities that need to be carefully managed.
Here’s a look at the key pros and cons of buying with others and what to think about before taking the leap.
The Pros of Co-Owning Property
1. Shared Costs = Easier Entry
Buying with another person allows you to split the deposit, purchase costs, and loan repayments, making it easier to afford a property sooner than going it alone. This can be particularly helpful for first-home buyers priced out of the solo market.
2. Increased Borrowing Power
When two or more parties combine incomes, your borrowing capacity may increase, opening the door to properties in better suburbs or stronger investment-grade locations.
3. Reduced Financial Risk
Ongoing expenses, such as council rates, maintenance, and insurance can be divided, making the property more affordable to hold over time. This can reduce financial pressure, especially during times of rising interest rates.
4. Faster Portfolio Growth
For investors, co-ownership can be a smart way to leverage into multiple properties sooner, especially when each party brings equity or borrowing power to the table.
The Cons of Buying with Family or Friends
1. Legal & Financial Complexity
Co-owning a property creates a legal relationship that needs to be clearly defined. You’ll need to decide:
- How ownership is split (50/50 or otherwise)
- Who contributes what
- What happens if someone wants to sell
- How costs and profits are managed
These issues must be addressed in a co-ownership agreement – ideally drafted by a solicitor.
2. Borrowing Entanglement
When you apply for a loan together, both parties are jointly and severally liable. That means if one person defaults, the other is still responsible for the full debt. It may also impact your ability to borrow independently in the future.
3. Potential for Disputes
Life circumstances changed relationships, finances, priorities. If one party wants to exit the property, refinance, or change its use (e.g., live in it vs. rent it out), things can get complicated. Open communication and written agreements are critical.
4. Tax and Estate Planning Implications
Co-owning can affect your eligibility for certain tax concessions (like the First Home Owner Grant or capital gains exemptions) and may complicate estate planning. Seeking financial advice is essential before proceeding.
Key Considerations Before Buying Together
If you’re thinking about co-owning property, here are some important steps to take:
- Get legal advice: Draft a formal co-ownership agreement that outlines everyone’s rights and responsibilities.
- Speak with a mortgage broker: Understand your borrowing capacity and how your arrangement will be structured.
- Plan for the future: Discuss exit strategies and contingency plans upfront.
- Keep communication open: Transparency is key to maintaining trust and clarity over time.
How Crest Property Investments Can Help
We work with many clients exploring joint property purchases, from first-home buyers teaming up to investors forming partnerships.
Our role is to:
- Help identify properties that suit joint strategies
- Offer guidance on structure and risk
- Recommend professional contacts (brokers, solicitors, advisers)
- Source brand-new and off-the-plan opportunities with strong long-term potential
We offer a free, personalised service designed to help you buy smart, whether you’re going solo or teaming up.
Final Thoughts
Buying with family or friends can be a great way to enter the market faster and build wealth sooner, but it’s not a decision to take lightly. With the right structure, planning, and advice, co-ownership can work – just make sure everyone’s on the same page from day one.
If you’re considering this path, let’s chat. At Crest Property Investments, we can help you make confident, informed choices that support your goals – whatever they may be.
How to source a property?
When sourcing a property, there are many opportunities but there are factors and fundamentals that should be considered to measure if the property is best suited to you or not. Seeking advice from a property adviser (buyers’ agent) will be the best way to buy the right property for you.
At Crest Property Investments, we help buyers source high-quality brand new and off the plan properties across Melbourne and beyond – backed by research, data, and local insights.
If you’d like some assistance sourcing a brand new or off the plan property, please don’t hesitate contact us.
We would welcome the opportunity to help with your property purchase. Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
December 2025
