Something we have noticed recently is an increase in people contacting us who are looking to purchase a property with family or friends. They may wish to purchase with a sibling, an adult child with a parent, and senior friends (coupled up or platonic), as they face the challenge of rising property prices in an area they love where they have friends and a genuine sense of community.
At Maynard Property Group, we are increasingly being approached by clients advised by their mortgage broker and legal advisers to pool their financial resources, so they can share the burden of deposits, mortgage repayments, and ongoing costs.
However, while the approach can improve affordability, it also requires careful planning and clear legal frameworks to avoid financial and personal disputes.
We always advise you to seek independent legal advice, so we can assist you!
Structuring Ownership
One of the first and most critical decisions is how the property will be legally owned, and there are two primary structures available:
- Tenants in Common: Often preferred among friends, this arrangement allows each party to own a defined share of the property, which may be unequal—such as a 60/40 split—depending on individual contributions. Each owner can sell or transfer their share independently, including through a will.
- Joint Tenancy: Often chosen when buying with family, this structure involves equal ownership between parties. A key feature is the right of survivorship, which means that if one owner dies, their share automatically transfers to the other owner(s), regardless of any will.
At Maynard Property Group, we understand you need to select the right structure and understand long-term legal and financial implications, making professional advice essential.
The Importance of a Legal Agreement
A formal co-ownership agreement is not optional—it is fundamental. Yes, you trust your friends, hey, you went to university together. But friendships can have their ups and downs, so this document should clearly outline how mortgage repayments, maintenance costs, and unexpected expenses – and they will occur! – will be shared.
It should also define procedures for resolving disputes, selling the property, or buying out a co-owner’s share. Without such an agreement, disagreements can escalate quickly, potentially damaging both finances and personal relationships.
Financing and Liability
Some lenders now offer tailored products for co-buyers, allowing individuals to maintain separate finances while sharing ownership of a single property. While these arrangements can provide flexibility, they do not eliminate risk.
In most cases, all parties remain jointly liable for the mortgage, meaning if one person is unable to meet their repayments, the others are legally responsible for covering the full amount.
Federal Government Support
Eligible buyers may benefit from federal initiatives such as the Home Guarantee Scheme, which allows purchasers to secure a property with as little as a 5 per cent deposit without paying lenders mortgage insurance. This can significantly reduce the upfront financial barrier for co-buyers.
Planning an Exit Strategy
A clear exit plan is essential from the outset, because circumstances can change—one party may wish to sell, experience financial hardship, or enter a new relationship.
Establishing agreed processes for these scenarios helps prevent conflict and ensures a smoother transition if the partnership – but not the friendship – needs to end.
The right home to meet the shared living arrangements
When looking for a property that is going to be a comfortable shared living arrangement, the property selection is imperative. The right property can be the difference between a successful living arrangement where you both benefit from sharing an asset that is increasing in value, whilst enjoying the company of living with another, and potentially needing to sell the asset after several months of realising that the arrangement is just not going to work. We find that properties which offer good separation of space, enough bathrooms, a commute, and a location that is convenient to all parties, and room for pets are key considerations.
A family purchase
Recently, we assisted Jessica* and her adult son, Lauchlan purchase a property together. Jessica, a nurse, was keen to have a shorter commute to her workplace, while Lachlan, who had just finished his plumbing apprenticeship, wanted to live near the beach. Both lead busy lives, and when we broke down what they wanted versus what they could afford – and needed – the pair decided a townhouse with two or three bedrooms and two bathrooms, and a garage would be ideal. And crucially, they were open-minded as to the suburb.
This flexibility meant their search had a more diverse market, and we whittled down the areas to Robina, Varsity Lakes, and Burleigh.
After several weeks, where two potentially suitable properties we investigated turned out to have red flags, we located a split-level three-bedroom townhouse in Burleigh Waters.
On a quiet street, the property featured an ensuite for the main bedroom (which Jessica, as she was making the larger contribution to the mortgage, snaffled), with a two-way bathroom for Lauchlan, plus a powder room off the main entry. A double garage and a spacious and a low-maintenance courtyard sealed the deal. We organised a viewing on the first open-for-inspection, and during the competitive buying process we were able to put forward a competitive offer and had the building and pest inspector there within 2 days of the property being under Contract.
And by the time they purchased, we had helped the duo approach their co-living arrangement with the same diligence as a business partnership.
We ensured that they had:
- Sought independent legal advice: Jessica and Lachlan consulted their own solicitor to review contracts and agreements.
- Assessed their financial health: Jessica had a stronger credit profile but with Lachlan’s income, their mortgage brokers confirmed they had vastly increased their borrowing capacity and loan approval chances.
- Maintained financial transparency: We helped them through open discussions to frankly talk about their income, savings, debts, and long-term goals, to ensure they each understood what the other wanted before making a joint purchase.
A Business-Like Approach
While buying with a friend can offer a pathway into homeownership, it should be treated as a formal financial partnership rather than an informal arrangement.
At Maynard Property Group, we can ensure clear communication, documented agreements, and professional guidance, but most importantly, selecting the right property to ensuring the venture remains both financially sound and personally sustainable.
Buying a home on your own or with friends or family, doesn’t have to be stressful. At Maynard Property Group, we are here to help. Above all, it is imperative that all parties seek formal legal and financial advice before entering into any agreement.
If you have any questions, book a no-obligation Discovery Call.
*Names changed for client privacy.
Updated in April 2026