THE PITFALLS OF BUYING PROPERTY WITH A GROUP OF FRIENDS BY SUE STEEL With housing affordability continuing to challenge young Australians, especially in regional centres like Tamworth, many are looking at creative ways to get a foot in the property market. One growing trend is pooling resources with friends, colleagues, or even extended family to jointly purchase a home or investment property. While the concept might seem like a smart solution, it's not without risks. Co-ownership arrangements can break down, leaving people financially and emotionally stranded. Without a robust legal agreement in place, things can unravel quickly. Co-ownership groups often include long-time friends, local sporting teammates, church or community group members, or even siblings teaming up to break into the local market. Tamworth's relative affordability compared to capital cities may attract such buyers, but the challenges remain the same. Whether someone holds a 25 per cent, 40 per cent or even larger share of a jointly owned property, problems can arise if one party decides to exit the arrangement. It might sound simple someone wants to sell their share, perhaps to another co-owner. But what if they want to sell to an outsider? Or insist a specific person gets their portion? Or push for the entire property to be sold to cash out? There are also legal decisions to make about how to hold the title - Joint Tenants or Tenants in Common - each with different implications. Some buyers even choose to form a trust to H acquire the property, but any of these options must be backed by a properly drafted legal agreement tailored to the parties' goals. Property is usually the biggest investment people make. That's why legal advice is essential to protect everyone's interests from the outset. In regional areas like Tamworth, where strong community ties might encourage co-buying arrangements, the emotional risks can be just as serious as the financial ones. If things turn sour, it can destroy friendships, families and reputations. Any legal agreement needs to be future- proofed - anticipating events like marriage, divorce, illness, children, financial hardship, or death. It must also deal with practicalities such as what happens if the property needs urgent repairs but only one party can afford it. How do you compensate them? What if someone defaults on their mortgage repayments? A well-drafted agreement can establish clear processes for resolving disputes and outlining obligations. Everyone should have a say in decisions around the property's management and direction. People often fall out when they feel excluded from decisions, especially where money is involved. That's why it's vital to be transparent and proactive from the start. While the idea of co-buying in Tamworth or surrounding regions can be appealing, the bottom line is this: Get independent legal advice. Have a solid, written agreement. And don't assume friendship alone is enough to carry a financial partnership. Call us at Stacks Law Firm Tamworth to guide you through the process and help ensure your interests are protected from day one. STACKS SUE STEEL 02 6767 2000 1 Fitzroy Street Tamworth stacklaw.com.au STACKS LAW FIRM AW7447240 THE PITFALLS OF BUYING PROPERTY WITH A GROUP OF FRIENDS BY SUE STEEL With housing affordability continuing to challenge young Australians , especially in regional centres like Tamworth , many are looking at creative ways to get a foot in the property market . One growing trend is pooling resources with friends , colleagues , or even extended family to jointly purchase a home or investment property . While the concept might seem like a smart solution , it's not without risks . Co - ownership arrangements can break down , leaving people financially and emotionally stranded . Without a robust legal agreement in place , things can unravel quickly . Co - ownership groups often include long - time friends , local sporting teammates , church or community group members , or even siblings teaming up to break into the local market . Tamworth's relative affordability compared to capital cities may attract such buyers , but the challenges remain the same . Whether someone holds a 25 per cent , 40 per cent or even larger share of a jointly owned property , problems can arise if one party decides to exit the arrangement . It might sound simple someone wants to sell their share , perhaps to another co - owner . But what if they want to sell to an outsider ? Or insist a specific person gets their portion ? Or push for the entire property to be sold to cash out ? There are also legal decisions to make about how to hold the title - Joint Tenants or Tenants in Common - each with different implications . Some buyers even choose to form a trust to H acquire the property , but any of these options must be backed by a properly drafted legal agreement tailored to the parties ' goals . Property is usually the biggest investment people make . That's why legal advice is essential to protect everyone's interests from the outset . In regional areas like Tamworth , where strong community ties might encourage co - buying arrangements , the emotional risks can be just as serious as the financial ones . If things turn sour , it can destroy friendships , families and reputations . Any legal agreement needs to be future- proofed - anticipating events like marriage , divorce , illness , children , financial hardship , or death . It must also deal with practicalities such as what happens if the property needs urgent repairs but only one party can afford it . How do you compensate them ? What if someone defaults on their mortgage repayments ? A well - drafted agreement can establish clear processes for resolving disputes and outlining obligations . Everyone should have a say in decisions around the property's management and direction . People often fall out when they feel excluded from decisions , especially where money is involved . That's why it's vital to be transparent and proactive from the start . While the idea of co - buying in Tamworth or surrounding regions can be appealing , the bottom line is this : Get independent legal advice . Have a solid , written agreement . And don't assume friendship alone is enough to carry a financial partnership . Call us at Stacks Law Firm Tamworth to guide you through the process and help ensure your interests are protected from day one . STACKS SUE STEEL 02 6767 2000 1 Fitzroy Street Tamworth stacklaw.com.au STACKS LAW FIRM AW7447240