Co-buying property — purchasing with a partner, friend or family member — is increasingly common in Australia as individual borrowing capacity struggles to keep pace with rising property prices. Done correctly, co-buying allows buyers to enter the market sooner, access better properties and share costs. Done incorrectly, it can create significant legal, financial and relationship complications. This guide covers everything you need to know before buying property with another person in Australia.

Joint Tenants vs Tenants in Common — What Is the Difference?

There are two ways to hold property jointly in Australia:

• Joint tenants: Each party owns the whole property together. If one party dies, their interest automatically passes to the surviving owner (right of survivorship) — regardless of what their will says. Used most commonly by married couples.
• Tenants in common: Each party owns a defined share of the property (e.g. 50/50 or 70/30). Each share can be left in a will independently. Used most commonly for investment co-purchases between friends, siblings or business partners.

How Do I Decide on an Ownership Split?

The ownership split should reflect each party’s financial contribution — deposit, ongoing mortgage payments, renovation costs and holding costs. A 70/30 split is common where one party has contributed a larger deposit or earns significantly more. Document the agreed split in a co-ownership agreement prepared by a solicitor before settlement.

What Should a Co-Ownership Agreement Cover?

• Ownership split and how it was calculated
• How mortgage repayments, rates, insurance and maintenance costs are shared
• What happens if one party wants to sell (right of first refusal, forced sale process)
• What happens if one party cannot meet their financial obligations
• What happens on relationship breakdown (for couples)
• How decisions about the property are made (renovations, tenants, sale)

GeeVee Verdict

Co-buying is a legitimate and increasingly common entry strategy for Melbourne property — but the co-ownership agreement is non-negotiable. The most common co-buying disputes arise from undocumented contribution splits, disagreements about when to sell, and one party’s financial circumstances changing. A well-drafted agreement from a property solicitor costs $1,000–$2,500 and can prevent disputes worth hundreds of thousands of dollars. Use GeeVee to find the right property together, then protect the investment with the right legal structure.

Frequently Asked Questions

Can I buy property with a friend using the First Home Owner Grant?

Both buyers must be first home buyers for either to qualify for the FHOG. If one co-buyer has previously owned property, neither party can access the grant. Each buyer must also intend to live in the property as their principal place of residence for the required minimum period (typically 12 months in Victoria).

What happens if my co-buyer wants to sell and I don’t?

If you hold as tenants in common without a co-ownership agreement, either party can apply to the Supreme Court for an order of sale (partition or sale order) — the court can force a sale even if the other party objects. A co-ownership agreement with a clear buy-out mechanism and right of first refusal is the only way to protect against this scenario.

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