Could Co-Buying Be Your Way Into The Property Market?

Mar 16
5 min read

Buying your first home can feel like a lonely mission.

Save the deposit.

Increase your borrowing power.

Find a property you can afford...

For many first home buyers in Australia, that path can feel overwhelming - especially when property prices are high and borrowing capacity doesn’t stretch as far as expected.

But what if buying property didn’t have to be something you did alone?

There’s another strategy that more people are starting to explore. It's called co-buying.

In this blog post, I’m going to walk you through what co-buying is, how it works, and the six foundations I believe absolutely need to be in place if you’re ever considering buying property with someone else.

Because while co-buying can be a powerful way to enter the property market sooner, it’s not something to rush into without the right structure.

Let’s break it down.

What is Co-Buying?

Co-buying simply means purchasing a property with one or multiple other people. Instead of buying on your own, or as a couple, two or more people combine their resources to purchase a property together - sharing ownership, costs, risks and rewards.

This can be done with:

family members
friends
siblings
business partners
or other trusted people in your network

When multiple people buy a property together, the ownership structure is usually set up as tenants in common.

Without diving too far into legal language, this simply means that each person owns a defined percentage of the property.

For example, ownership could be structured as:

50/50
30/30/40
60/30/10

Or whatever ownership split you choose, each person’s share is clearly defined. This structure also means that if someone passes away, their share of the property goes to whoever they’ve nominated in their will - rather than automatically transferring to the other owners - there is no right of survivorship. The exact structure is something your solicitor and professional team would help you establish.

Why do some First Home Buyers use Co-Buying?

Some of the biggest challenges first home buyers face today include increased property prices, borrowing capacity constraints, and saving larger deposits. The resources needed to purchase property can feel more challenging to assemble.

Feeling limited was certainly something I experienced with one of my property purchases.

At the time, my husband and I had the deposit and the motivation, but because I had recently started a new job and was on probation, lenders wouldn’t consider my income in servicing calculators, so our borrowing capacity was based on just one income instead of two.

So even though we had savings and a desire, we couldn’t borrow enough to move forward. That's when the idea of co-buying showed up. Our mortgage broker asked a simple question: “Is there anyone you would consider buying property with?”

By partnering up with family members and combining our different resources - borrowing capacity, savings, time, and experience - we were able to purchase a property that none of us could have purchased individually.

And that’s the real power of co-buying. It allows people to combine resources to access opportunities that might otherwise be out of reach.

But there’s an important disclaimer here... Co-buying should never be rushed or entered into lightly. When property, money and relationships are involved, things can become complicated quickly if the right foundations aren’t in place.

Which brings me to the most important part of this strategy.

The 6 Foundations that make Co-Buying work

If you’re ever considering buying property with other people, these are the six foundations you want to make sure are in place before proceeding.

Shared Values
Before anything else, the people involved need to share similar values. If your priorities, goals or communication styles clash, property and money will amplify those differences very quickly.
Aligned values create the foundation for navigating challenges together later on.
Clear Communication & Transparency
There must be complete honesty and open communication.
No hidden debts.
No financial surprises.
No secrets.
Everyone needs to feel safe putting all their cards on the table and having honest conversations about money and expectations.
Exit Strategies & Hard Conversations Early
One of the biggest mistakes people make is avoiding uncomfortable conversations. Instead, you want to address them before the purchase happens. It's important to ask questions and discuss things like:
- What happens if someone wants to sell?
- What if someone loses their job?
- What if someone gets married and a new partner enters the picture?
Discussing exit strategies early and creatin win-wins protects everyone involved. It also prevents being reactive later because everyone is on the front foot from the beginning.
Defined Roles and Responsibilities
Every person involved should know exactly what they are responsible for. This might include defining who:
- manages the finances
- handles property maintenance
- oversees property administration
- coordinates communication with professionals
When roles are clearly defined, and you put structures and systems in place for workability, a co-buying arrangement can run much more smoothly.
Everything in Writing!
Verbal agreements are not enough when property is involved.
Everything should be clearly documented and agreed upon in writing so there is no confusion later. This protects everyone and creates a reference point if disagreements arise.
Professional Advice
Which leads to point 6 - ensuring you get professional advice. You don't know what you don't know, so having a strong professional team behind you and a co-buying arrangement is essential.
This might include:
- a mortgage broker
- solicitor
- accountant
- financial planner
Ideally, you want your professional team to communicate with each other to ensure all is coordinated and structured correctly from the start.

Is Co-Buying Right for You?

When the right foundations are in place, co-buying can be an incredibly powerful strategy. It can help:

increase borrowing capacity
bridge savings gaps
allow people to enter the property market sooner

But if those foundations aren’t there - especially aligned values, open communication, exit strategie and legal clarity - it can create tension in relationships.

So if something feels off, that’s a signal to pause and reassess.

Yes, your goal is to buy a property. But you want to me mindful that it's not at the expense of your relationships, or peace of mind. Your peace and ability to fall asleep easily each night are too valuable.

So if one or more of these 6 foundations aren't in place, use that as a red flag to take a step back and assess whether this strategy actually works for you or not.

Want Help Finding The Right Pathway Into The Property Market?

The co-buying strategy is just one of several pathways first home buyers are using to enter the property market.

Inside my program The First Home Finance Formula, I walk you through 12 strategic pathways and help you figure out which one could work best for your situation.

If you’re feeling overwhelmed, unsure where to start, or struggling to see how buying your first home could be possible, the program is designed to help you build clarity and confidence. You can learn more about it here.

I hope you found this blog post helpful. Feel free to reach out if you have any questions - or as I mentioned, check out my online program - it's an incredibe resource.