Buying Your First Home with Friends or Family: Is Co-Ownership Right for You?

Buying a home on your own can be a challenge, especially with rising property prices in Australia. But what if you teamed up with family or friends to share the costs and enter the property market sooner? 

Thinking about co-owning a home with family or friends? Shared ownership is a smart way to enter the market—just make sure you’ve got a solid plan

Co-ownership is becoming a popular first-home buying strategy, allowing you to split the financial burden, increase your borrowing power, and still qualify for first-home buyer grants. But before committing, it’s essential to understand how co-ownership works and whether it’s the right fit for you. 

Want to explore other pathways to homeownership? Read our guide on Government Grants for First-Home Buyers. 

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What is Co-Ownership? 

Co-ownership means buying a property with another person, such as: 

✔ Purchasing with a sibling or parent to afford a better home 

✔ Buying with a partner before getting married or combining finances

✔ Teaming up with a trusted friend to enter the property market sooner 

This strategy allows you to split the deposit, mortgage repayments, and other costs while still benefiting from capital growth and first-home buyer incentives. 

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Why Consider Co-Buying a Home? 

The biggest advantage of buying property with family or friends is making homeownership more affordable. Here’s why it can be a great strategy: 

✔ Split the costs – Share the deposit, mortgage repayments, stamp duty, and maintenance. 

✔ Enter the market sooner – You don’t need to save as much compared to buying alone. 

✔ Qualify for first-home buyer benefits –  First-home co-owners can still access government grants if they live in the home. 

✔ Increase borrowing power – Lenders assess combined incomes, allowing you to afford a better property. 

✔ Reduce financial risk – Shared costs mean less financial pressure on each buyer. 

Wondering how much you need to save? Use our Home Loan Deposit Calculator to set a savings goal. 

My Finance Agent broker Greg Robinson is celebrating with client Paulus after securing his property purchase

First-Home Buyer Benefits for Co-Owners 

When purchasing their first home, co-owners who live in the property can qualify for first-home buyer incentives including: 

• First Home Owner Grant (FHOG) – Eligible co-owners can receive a government grant of $10,000 

• Stamp Duty Concessions – Pay reduced or no stamp duty, depending on the property price and location. 

• First Home Guarantee (5% Deposit Scheme) – Co-owners can apply for the low deposit scheme, avoiding Lenders Mortgage Insurance (LMI). 

  
  

Want to check your eligibility? Use our First-Home Buyer Guide to learn more. 

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Things to Consider Before Co-Buying a Home 

Co-ownership is a long-term financial commitment, so it’s important to plan ahead. Here’s what you need to consider: 

1️⃣ Choose the Right Ownership Structure 

There are two common ways to structure property ownership: 

✔ Joint Tenants – Each owner holds equal ownership (50/50). If one person passes away, their share automatically transfers to the other owner. 

✔ Tenants in Common – Each owner holds a specific share (e.g., 60/40), allowing flexibility in ownership percentages. 

💡 Tip: We can refer you to  a property lawyer to choose the best structure for your situation. 

  

2️⃣ Set Up a Co-Ownership Agreement 

A legal agreement helps prevent financial disputes and outlines: 

✔ Each person’s contribution (deposit, mortgage, bills, maintenance) 

✔ Decision-making process (renovations, selling, refinancing) 

✔ Exit strategy – What happens if one person wants to sell? 

Want to track your mortgage and home equity over time? Try the My Finance Agent App for real-time property value updates. 

Track your co-ownership journey with ease using the My Finance Agent App—set goals, monitor savings, and view your full financial picture in one place.

3️⃣ Financial Considerations 

Before buying together, assess: 

✔ Borrowing power – How much can each person afford? 

✔ Credit scores & debt – A co-owner with bad credit may impact loan approval. 

✔ Long-term financial plans – Will you sell in 5 years or hold the property long-term? 

Not sure what your borrowing power is? Use our Home Loan Borrowing Calculator.

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Co-Ownership Example: Siblings Buying Together 

Let’s say Alex and Lisa are siblings who want to buy a home in Melbourne. 

Property price: $800,000 

Combined deposit: $80,000 (10% deposit split 50/50) 

Home loan: $720,000 at 6% interest over 30 years 

Monthly repayments: $4,317 (each pays $2,159 per month) 

✔ They qualify for the First Home Guarantee, avoiding LMI. 

✔ They split the mortgage repayments, making homeownership manageable. 

Want to see if co-ownership is right for you? Book a chat with a broker to get expert advice. 

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Need Home Buying Advice That’s Right for You?

Purchasing your first home is a big step, and the right support can make it a whole lot easier. Our friendly team is here to help with your questions, offer personalised guidance, and walk alongside you through each stage of your journey.

Call us at (02) 8313-8400 or request a call back