PHOTO: By Helena Lopes
As house prices continue to put home ownership out of reach for many Aussies, a growing number of first-home buyers are flipping the script – by purchasing property with a friend, sibling or even a co-worker.
The trend, known as “co-buying”, is on the rise across Australia, offering a creative and practical path into the property market for those who can’t do it alone.
“When I realised I couldn’t afford a place on my own, buying with my best mate just made sense,” said one first-time buyer featured in a recent 7NEWS Spotlight report.
💰 Why Co-Buying Is Booming
With skyrocketing property prices and tougher lending criteria, many young Australians are locked out of solo homeownership. By pooling savings and splitting costs, co-buyers can double their borrowing power, get a foot on the ladder sooner, and share the financial pressure of mortgage repayments.
According to CoreLogic data, house prices in most capital cities have risen by over 30% in just three years, making joint purchases an increasingly appealing solution.
🏡 How It Works
Co-buying typically involves two or more people jointly applying for a home loan and sharing ownership of a property. The title can be registered as:
-
Tenants in Common: Each person owns a specific share of the property, which can be unequal.
-
Joint Tenants: Each person has equal ownership, and the property automatically passes to the other if one party dies.
Most co-buyers also draw up a co-ownership agreement outlining each person’s financial contributions, responsibilities, and an exit strategy if one party wants to sell.
🤝 Who’s Doing It?
From siblings in their 20s pooling savings, to long-time friends deciding to invest together, Australians from all walks of life are embracing the idea of co-buying. In some cases, even adult children are buying property with their parents to create intergenerational wealth and shared housing solutions.
“You don’t have to do it alone – and in today’s market, it’s almost impossible to,” says real estate expert Nerida Conisbee.
“People are getting creative with how they enter the market – and co-buying is one of the smartest ways we’re seeing right now.”
⚖️ The Risks – and How to Protect Yourself
Co-buying comes with plenty of perks – but it’s not without pitfalls. Experts recommend:
-
Getting independent legal advice before signing anything
-
Drafting a detailed co-ownership agreement
-
Being crystal clear about exit strategies, renovations, and what happens if someone can’t pay
Financial transparency, trust, and good communication are essential. And yes – treating it like a business partnership, even with family or close friends, is a must.
🔑 The Bottom Line
With affordability continuing to be a major barrier, co-buying could become the new normal for a generation of Australians. For many, it’s not just a compromise – it’s a smart, strategic move that turns “one day” into “today.”
If you’re thinking about co-buying, get your legal and financial ducks in a row, and don’t be afraid to get creative. Because in this market, teamwork might just be the secret weapon to owning your first home.