Tenancy in Common Australia 2025: Ownership, Benefits & Risks

With property prices remaining high in Australia through 2025, more Australians are pooling resources to get a foot on the ladder. One of the most popular—and misunderstood—ways to co-own property is through Tenancy in Common (TIC). But what does it actually mean, and how does it compare to other ownership structures?

What Is Tenancy in Common?

Tenancy in Common is a legal framework that allows two or more people to own a property together, but with each owner holding a separate, defined share. These shares don’t have to be equal—one person could own 60%, another 40%, or any other proportion agreed on. Unlike Joint Tenancy, there’s no ‘right of survivorship’: if one owner passes away, their share becomes part of their estate, to be distributed according to their will.

In 2025, TIC arrangements are increasingly popular among:

• Friends or siblings buying an investment property together
• Couples entering second marriages and wanting distinct ownership stakes
• Parents helping children into the market but wanting to protect their share

This flexibility is a major drawcard, particularly in a market where pooling funds is often necessary to meet deposit and lending requirements.

How Tenancy in Common Works in Practice

Each TIC owner’s share is recorded on the property’s title. Here’s how it plays out in real life:

• Customised ownership: Alice and Bob buy a house together. Alice puts in 70% of the deposit and wants her share to reflect that. With TIC, she can own 70% and Bob 30%.
• Estate planning: If Alice passes away, her 70% share goes to her nominated beneficiaries—not automatically to Bob.
• Flexible exit: Either party can sell their share (subject to any agreement between co-owners), allowing for more control over their investment.

In 2025, digital conveyancing platforms and legal templates have made it easier to set up clear co-ownership agreements, outlining how costs, responsibilities, and exit strategies will work. This is crucial, as the law doesn’t automatically resolve disputes about repairs, mortgage payments, or selling up.

Pros and Cons of Tenancy in Common

While TIC offers unique flexibility, it comes with its own set of advantages and potential pitfalls:

• Pros:
  • Customisable ownership shares to reflect each party’s contribution
  • Each owner can bequeath their share to anyone in their will
  • Facilitates co-investment by friends, family, or business partners
  • Can help buyers access the market with smaller deposits and shared borrowing
• Cons:
  • Potential for disputes if co-owners’ goals or financial situations change
  • May be harder to sell a share if the other owner(s) don’t want to buy you out
  • All owners are usually jointly responsible for the mortgage, even if ownership shares differ
  • Requires robust co-ownership agreements to avoid costly legal battles

Recent legal updates in 2025 have made it easier to document and enforce co-ownership agreements, but the onus is still on buyers to get things in writing up-front.

2025 Trends: TIC and the Australian Property Market

With affordability at the forefront, the number of Tenancy in Common arrangements is on the rise in 2025. Some key trends include:

• Government incentives: Several state governments now recognise TIC for shared equity schemes, allowing first home buyers to access grants even if a parent or investor holds a minority share.
• Fintech innovation: New apps and platforms are helping co-owners manage contributions, track expenses, and automate legal paperwork.
• Tax implications: Each owner is taxed on their share of rental income and capital gains. Recent ATO guidance has clarified how deductions and obligations are split according to ownership percentage.

These changes are making TIC an even more attractive option for those who want flexibility and control over their property investments.

Is Tenancy in Common Right for You?

Tenancy in Common can be a powerful tool for Australians looking to co-invest, protect family wealth, or simply get into the property market with friends or relatives. But it demands careful planning and clear agreements.

• Ensure your co-ownership agreement covers contributions, ongoing costs, dispute resolution, and exit strategies
• Understand how your share affects tax, lending, and estate planning
• Review your arrangement regularly as circumstances change

With the right preparation, TIC can deliver flexibility and peace of mind in an unpredictable property market.