Buying Investment Property as Joint Owners: Risks & Benefits

Buying an investment property with someone else — whether a partner, friend, or family member — can be a powerful way to enter the market. It allows you to combine financial resources, share risk, and get started sooner than you might on your own.

But joint ownership also comes with serious considerations. From finance to future exits, you’ll need a clear plan upfront to avoid complications down the track.

Here’s a practical breakdown of the key benefits and risks of buying investment property jointly — and how to structure it the right way.

Types of Joint Ownership in Australia

Before diving into pros and cons, it’s important to understand how joint ownership works.

There are two main structures:

• Joint Tenants

  • Each party owns the property equally

  • If one person passes away, their share automatically transfers to the other (regardless of their will)

  • Common for couples or spouses

• Tenants in Common

  • Each party owns a specific share (e.g. 50/50, 70/30)

  • Shares can be passed on via a will

  • Allows more flexibility for investment partnerships

For investment purposes, Tenants in Common is generally preferred — especially if you’re buying with a friend, family member, or business partner.

Key Benefits of Buying Property Jointly

• Easier Entry Into the Market

  Pooling your deposit, income, and borrowing power can help you:

  • Afford a better-quality or higher-growth property

  • Enter the market sooner

  • Reduce your personal debt exposure

    
    

• Shared Financial Responsibility

  Ownership costs — including mortgage repayments, rates, insurance, and maintenance — can be split. This eases the financial burden and makes holding the property more sustainable.

  
  

• Diversified Risk

  Instead of overcommitting to a single large purchase alone, joint investment spreads the risk between multiple parties. If structured correctly, this can reduce pressure and allow for more strategic growth.

  
  

• Stronger Borrowing Power

  Two incomes and stronger combined serviceability can help with loan approval and potentially better terms — though this depends on your individual profiles and lender policies.

Key Risks to Watch For

• Future Disagreements

  Property is a long-term commitment. If owners aren’t aligned on strategy, timelines, or exit plans, disputes can arise — especially around selling, refinancing, or handling vacancies.

  
  

• Shared Liability

  Most banks will assess both parties as jointly and severally liable. This means if one party can’t pay their share, the other is legally responsible for 100% of the loan.

  
  

• Exit Challenges

  If one person wants to sell or access equity, and the other doesn’t, complications can arise. You may be forced to sell, refinance, or buy out the other party — which may not always be financially viable.

  
  

• Tax and Legal Complexity

  Capital gains, income splitting, depreciation, and loan interest deductions must be tracked accurately. If ownership shares are unequal, this becomes even more important.

Best Practices for Successful Joint Investments

To minimise risk and protect the relationship:

• Set clear expectations upfront — including ownership split, financial contributions, and investment goals

• Create a formal co-ownership agreement — outlining how decisions will be made, what happens in case of dispute, and exit provisions

• Choose the right ownership structure — Joint Tenants vs Tenants in Common

• Work with trusted professionals — including a mortgage broker, solicitor, and accountant to ensure your structure is financeable, compliant, and aligned with your goals

When Joint Ownership Makes Sense

• You’re priced out of the market on your own, but ready to invest with a trusted partner

• You and your spouse want to co-invest but manage contributions or risk independently

• You’re building a family portfolio with clear long-term objectives

• You have aligned goals, risk appetite, and communication style

It may not suit you if:

• You prefer full control of your investments

• Your financial or investment timelines are very different

• You can already invest solo and want a simpler structure

Smart Property Partnerships Start With Clarity

Joint ownership can be a smart way to fast-track your investment journey — but only if you treat it like a structured business decision, not just a handshake deal.

At PropVest, we help you explore the right structure for your situation — whether investing solo, with family, or as part of a trust or partnership.

Disclaimer:This article is for general information only and does not constitute financial, legal, or lending advice. You should seek advice from a qualified professional before making any property or investment decisions.