Frequently Asked Questions

Yes, absolutely. Friends can buy property together as "tenants in common" or "joint tenants". The key is having a proper legal agreement outlining ownership percentages, financial contributions, and dispute resolution. We recommend consulting a solicitor to set this up correctly.

Tenants in common: Each person owns a specific percentage (can be unequal), and can leave their share to beneficiaries. Joint tenancy: All owners have equal rights, and shares automatically pass to survivors if someone dies. For friend groups, tenants in common is usually better.

Typically 5-20% of the property value. The larger your deposit, the lower your interest rate and the less mortgage insurance you'll pay. First-home buyer schemes like Boost to Buy can reduce this to as low as 2%, with the government guaranteeing the rest.

Not always equally. Your contributions should match your ownership percentages. If one person contributes 40% and another 30%, they should own 40% and 30% respectively. This avoids future disputes and is clearer for tax purposes.

Several schemes are available: First Home Owner Grant (up to $30K), Stamp Duty concessions, Boost to Buy (2% deposit), and the First Home Super Saver Scheme ($50K per eligible person). Each co-buyer may qualify separately for some schemes.

All co-mortgagors are jointly and severally liable. This means the lender can pursue any borrower for the full amount if others default. This is why a solid co-ownership agreement is essential to protect everyone.

The exiting person can either sell their share to the remaining owners (if agreed) or sell the whole property. Your co-ownership agreement should specify buyout procedures, valuation methods, and timelines. It's much better to have this in writing before problems arise.

Split expenses according to your ownership percentages (or another agreed arrangement). Keep meticulous records of all payments. Tools like CoHomed automate this tracking and ensure transparency, which helps maintain friendships.

Lenders look at combined income and assets. However, each borrower usually must meet minimum lending criteria individually. If one friend has very poor credit or low income, they may not qualify as a borrower, though they can still own the property if others borrow.

With tenants in common: Their share goes to their beneficiaries (may need buy-in from new owners). With joint tenancy: Their share automatically passes to survivors. Most friend groups prefer tenants in common for more control.

Typically $300-800 through a solicitor. This is a worthwhile investment given property values and the potential for disputes. It protects everyone and clarifies expectations.

Yes, if you're all first-home buyers. Each eligible person can withdraw up to $50,000 from their super for the property. This dramatically increases your combined deposit capacity.

Your co-ownership agreement should include dispute resolution procedures (mediation, arbitration). If unresolved, you may need to sell the property and split proceeds. Having clear agreements prevents many conflicts.

The process depends on your ownership percentages and agreement terms. Options include: one person buys out others, third-party purchase, or sale with proceeds split by percentage. Mediation can help resolve disagreements.

Each owner can claim the main residence exemption if it's their primary place of residence. However, if one person rents their room out or doesn't live there, that portion may be subject to capital gains tax. Consult an accountant about your specific situation.

Yes, but it requires lender approval. Any change in ownership should be properly documented with a new mortgage deed. Legal advice is recommended.

Generally no. If the property is only in one person's name, others have no legal protection if that person exits or has financial problems. Proper co-ownership with everyone on the title protects all parties.

It depends on complexity, but typically 5-15 pages. It should cover: ownership percentages, financial contributions, expense division, decision-making, exit procedures, and dispute resolution. Every situation is unique.

Yes, but all co-owners must consent. Any changes should be documented and may require re-registration. It's easier to get it right initially than to fix issues later.

Any business arrangement has risks. The key is proper planning: clear agreements, good communication, transparent financial tracking, and professional legal and financial advice. Many successful friend groups own property together with clear processes.