Two Ways to Own a Property by Purchasing with Family or Friends (PART-2)

Have you dreamed of owning a new home? If you purchase with a family member, colleague, or close friend you are close to achieving that dream.
House Property

Our previous blog discussed the benefits of family equity loans as an alternative of purchasing with family or friends. In this blog we will introduce another alternative and that is purchasing as tenants in common or joint tenants.

Now, how are “tenants in common” different from “joint tenants”?

    • Joint Tenants has the right to the entire property, jointly with others or with another tenant. This kind of property holding is common among married couples. A joint tenancy is applicable if for instance a person passed away, that person’s assets and interests would be transferred to the surviving spouse, regardless if the tenant who passed away has not given a last will of testament to verify transfer of ownership.


  • Tenants in Common has detached interests in a similar property. Each party will not receive exclusive ownership to any kind of property and it is only possible to transfer the property if and only if it is stipulated in the owner’s last will of testament.

Advantages of Buying

When you invest on a property with another interested investor, it would be more practical since both parties can share the expenses such as stamp duty fees, legal fees and other charges.

You will also have more opportunities for a better and bigger property in a much-preferred location. Furthermore, you will have somebody to help with home renovations, cleaning, and any kind of refurbishment projects like repainting and changing the floorboards.

You will be repaying for your personal home loan and not somebody else’s. This is what usually happens if you continue your rental for an indefinite period.

The First Home Owners Grant

Bear in mind that, there are requirements to gain access on FHOG or First Home Owner’s Grant. If both individuals are eligible to have an FHOG, both can apply but only one grant will be paid. However if both individuals are not qualified for the grant, the other one will also be automatically not eligible to receive a grant.

The situation is no different from a co-ownership agreement. Before acquiring any property, it is important to draw up a co-ownership agreement. This agreement will set the responsibilities and roles of each buyer/investor. It also includes all the important upfront issues, like in a situation where one of the investors would like to sell the property or if any of them ceased to make repayments.

This kind of co-ownership agreement can be costly. This however depends on the solicitor and the cost could come around to more or less than a thousand dollars.

Investing in a property in conveyance with someone gives you the chance of having an instant housemate to help you setup the new property or home business. Moreover, whenever the time of moving out comes, one of you can purchase the property or perhaps sell it together to a potential buyer and split the income. Another option is to decide on keeping the property as a joint investment and may be used as collateral to your next home loan.

Talk to a Mortgage Gallery Broker and be enlightened by the various mortgage options and know your responsibilities as a joint borrower.