As property prices continue to climb across Australia, more buyers are pooling their resources to get a foot on the ladder. Joint owned property arrangements—whether between friends, family, or de facto partners—are increasingly common in 2025. But before you sign a contract with someone else, it’s crucial to understand the legal, financial, and practical realities of co-ownership. This guide unpacks what’s changed, what to watch for, and how to protect your interests.
Understanding Joint Ownership Structures
There are two main ways to jointly own property in Australia: as joint tenants or tenants in common. Each has distinct legal and financial implications:
- Joint Tenants: Each owner has an equal share in the property. If one owner dies, their share automatically passes to the surviving owner(s) — this is called the ‘right of survivorship’. This structure is common for married or de facto couples.
- Tenants in Common: Each owner can hold a specified share of the property (e.g., 50/50, 70/30). Shares can be sold or bequeathed independently, making this structure popular for friends, business partners, or family members investing together.
In 2025, banks and conveyancers are reporting a rise in tenants in common arrangements, reflecting the growing trend of non-traditional co-ownership. Digital platforms and legal tech have also made it easier to draft tailored agreements that outline each party’s rights and responsibilities.
Key Legal and Financial Considerations in 2025
Co-owning property brings shared benefits—and shared risks. Here’s what’s new and noteworthy for 2025:
- Updated Stamp Duty Concessions: Several states, including Victoria and NSW, have introduced targeted stamp duty concessions for co-buyers who are first home owners or family members. Check your state revenue office for the latest eligibility criteria and thresholds.
- Tax Implications: Each co-owner is responsible for their share of rental income, capital gains tax (if sold), and any negative gearing benefits. The ATO’s 2025 updates clarify that each party must declare their proportionate share based on ownership structure, not just who pays the mortgage.
- Dispute Resolution: The Family Law Amendment Act 2025 now recognises co-ownership agreements in property disputes—even for non-romantic parties. This means a well-drafted co-ownership agreement can be invaluable if things go south.
It’s wise to formalise everything in a legally binding co-ownership agreement. Key clauses should cover:
- How costs (mortgage, rates, repairs) will be shared
- What happens if one party wants to sell or exit
- Arrangements for occupation—who lives in the property, and when
- Dispute resolution mechanisms
Practical Tips for a Smooth Co-Ownership Experience
Joint ownership can be rewarding—but also complicated if expectations aren’t aligned. Here are some real-world tips for 2025:
- Get Pre-Approval Together: Lenders in 2025 increasingly require all co-owners to be jointly and severally liable for the mortgage. This means if one party defaults, the other is on the hook for the full amount. Run the numbers carefully.
- Set Up a Joint Account: Use a dedicated account for property expenses. This simplifies record-keeping and helps avoid arguments over who paid what.
- Regularly Review Your Agreement: Life changes—relationships, jobs, and finances evolve. Make it a habit to review your co-ownership agreement every few years, or after major life events.
- Plan Your Exit Strategy: It’s not pessimistic—it’s practical. Agree upfront on a process for one party to buy out the other, or for selling the property if co-ownership is no longer viable. With property values fluctuating in 2025, a clear exit plan can save heartache (and money).
Case in point: When siblings Hannah and Alex bought a Melbourne unit together in 2020, they agreed on a buy-out clause if either wanted to move on. In 2025, Hannah’s job took her overseas—thanks to their agreement, she was able to sell her share to Alex smoothly, avoiding disputes or forced sale.
Conclusion: Joint Ownership is Powerful—When Done Right
Jointly owned property offers a way to break into a tough market or build wealth collaboratively. But success hinges on clear agreements, open communication, and a solid understanding of the legal and tax landscape in 2025. Take the time to get advice, document your plans, and revisit your arrangements as circumstances change. A little effort upfront can protect your investment—and your relationships—for years to come.
