Why Co-Owning Property Is on the Rise and What You Need to Know

Co-owning a home with a friend or family member is quickly becoming a popular pathway into the property market, especially for first home buyers and younger Australians. This approach offers a faster and more accessible way to secure a property without relying on financial help from parents.

Recent data from National Australia Bank highlights just how much this trend is growing. Joint home loans between friends and family rose by more than 33 percent between August 2024 and July 2025. Victoria led the way with a 47 percent increase, followed by South Australia at 37 percent and New South Wales at 34 percent. Western Australia and Queensland also saw strong growth, rising by 30 percent and 19 percent respectively.

With property prices continuing to climb, it is likely this trend will keep gaining momentum. Interest rates are also playing a role, with the Reserve Bank of Australia lifting the cash rate to 4.1 percent earlier this year, and further changes still a possibility. For many buyers, combining resources is becoming one of the most practical ways to enter the market.

Lenders are also adapting to this shift. Options like Commonwealth Bank’s Property Share allow up to four people to purchase a property together and divide costs in a way that suits their individual circumstances. Each co-owner can maintain control over their own finances, with separate loans tied to the same property. This means each person is generally responsible for their share of the mortgage.

There are two main structures when it comes to co-ownership, and understanding the difference is essential.

Joint Tenancy

With joint tenancy, all owners hold an equal share in the property. Decisions about selling or making changes must be agreed upon by everyone involved. If one owner passes away, their share is automatically transferred to the remaining owners. This structure is most commonly used by couples.

Tenancy in Common

Tenancy in common allows for more flexibility. Owners can hold unequal shares in the property, meaning one person might own 20 percent while another owns 80 percent. Each owner can sell or transfer their share without needing approval from the others. If an owner passes away, their share becomes part of their estate rather than automatically transferring to co-owners. This structure is often preferred by friends or siblings.

While co-ownership can make buying a home more achievable, it does come with important responsibilities. One of the biggest advantages is being able to enter the market sooner, often with a smaller deposit and reduced individual mortgage repayments. Ongoing costs such as council rates and maintenance can also be shared.

However, there are risks to consider. Even if ownership is split, all parties may still be liable for the full mortgage and associated debts. If one person cannot meet their obligations, the others may need to step in.

That is why choosing the right co-owner is critical. Beyond trust, it is important to align on long term goals, lifestyle preferences, property type, location and plans for the future. Open conversations about exit strategies, legal agreements and tax implications are also essential before committing.

Co-ownership can be a powerful way to break into the property market sooner than expected. With the right planning and the right people, it can set the foundation for a successful and rewarding property journey.