Buying together has become a more common option for Perth buyers, meaning getting into the property market doesn’t mean earning more or waiting years to build a bigger deposit.
It could be about buying differently.
As affordability pressures continue to make purchasing a home challenging, more people are considering co-buying — purchasing a property with family members, siblings or even close friends.
By combining deposits, incomes and borrowing capacity, co-buying could open the door to a property that may have been difficult to purchase alone.
But while it can be a great solution, there’s more to consider than simply splitting the mortgage.
💡 Why Buyers Are Considering Co-Buying
There are a few reasons co-buying can make sense.
Combine your buying power
Two or more buyers may be able to contribute towards the deposit and potentially increase the amount they can borrow, depending on their individual circumstances and the lender’s requirements.
Share the ongoing costs
Mortgage repayments aren’t the only expense that comes with owning a home. Rates, utilities, insurance, maintenance and other household costs may also be shared.
Get into the market sooner
Instead of each person trying to save enough to purchase separately, combining resources may create another pathway into home ownership.
Create a living arrangement that works for your family
For some families, co-buying also provides an opportunity for multi-generational living, particularly where a property offers separate living areas and enough privacy for everyone.
👨👩👧 What Can Co-Buying Look Like?
There isn’t one standard way to co-buy.
Parents and adult children might purchase together. Siblings might combine their resources. Two couples could potentially buy a larger property together. Close friends might decide that buying together makes more sense than continuing to rent separately.
Depending on the circumstances and lender, there may also be different ways of structuring the lending and ownership.
And this is where getting advice before you start making offers becomes important.
The way a co-buying arrangement is structured can affect each person’s borrowing position, financial responsibilities and options later.
⚠️ Have the Awkward Conversations Before You Buy
Buying a home together can work brilliantly when everyone understands the arrangement.
But circumstances change.
Before committing, consider questions such as:
- Who contributes what towards the deposit?
- How will mortgage repayments and household expenses be divided?
- Who pays for repairs, renovations and improvements?
- What happens if someone’s financial circumstances change?
- What happens if one person wants to move out?
- Can one owner buy the other person’s share?
- What happens if somebody wants to sell and the others don’t?
- How will any increase — or decrease — in the property’s value be dealt with?
These might not be the exciting parts of buying a home, but sorting them out at the beginning could prevent much bigger problems later.
It may also be worth obtaining independent legal and financial advice and having an appropriate written agreement in place before proceeding.
🦊 Could Co-Buying Work for You?
The interesting thing about home lending is that there isn’t always just one way to reach your goal.
At Fox Mortgages, we look at your individual circumstances and explore the lending options that may be available rather than assuming a traditional home loan structure is your only choice.
If you’re thinking about buying with parents, children, siblings or friends, we can help you understand:
- how lenders may assess the application;
- what your combined borrowing position could look like;
- different lending structures that may be available;
- the potential implications for each borrower; and
- what questions you should consider before moving forward.
Sometimes the answer isn’t to wait longer.
It’s to look at the problem differently.
Thinking about buying a property together?
Have a chat with the Fox Mortgages team before you start house hunting.
We can look at everyone’s circumstances, explain the finance options and help you understand what may be achievable — so you can make your next move with confidence.
Fox Mortgages — making your property plans easier to understand and easier to achieve.
General information only. Lending criteria, terms and conditions apply. Consider obtaining independent legal and financial advice before entering into a co-ownership arrangement.