Buying a first property with a friend can work, but only with the right structure. Episode 95 of Finance This, Property That follows Jem Corrish's purchase with his mate Tom, twelve months on: the co-ownership agreement, the negotiation, the renovation and the equity that now funds the next move.
A lot of first home buyers feel like the market is impossible right now. This conversation with Luke and Jem Corrish is the counter-argument: a real purchase, made by thinking differently, getting educated early and building the right team before signing anything.
How did Jem buy his first property with a mate?
Jem and Tom combined deposits and borrowing power to buy a property in Kingston. They negotiated hard after the building and pest inspection, worked through a difficult vendor and settlement process and got the keys to a home neither could have bought alone at that point. Twelve months later the property has been renovated and the equity position has changed materially.
What makes co-ownership work?
The episode is blunt about this: buying with a friend is a legal and financial partnership, not a handshake. The conversations have to happen before the contract, and they have to be documented with independent legal advice. Contributions, cost sharing, what happens if one owner wants out, how renovation decisions get made and the exit process all belong in a written co-ownership agreement.
What if buying alone is out of reach?
Co-ownership is one path. The episode also walks through guarantor arrangements, first home buyer schemes and their timeframes, and rentvesting: renting where you want to live while buying where the numbers work. Each option carries different lending, tax and risk implications, which is why the structure should be chosen against a long-term plan rather than whichever door opens first.
Underneath all of them sit the same three pillars the show keeps returning to: income, available cash or equity and a clean credit position. Get those foundations right and there is almost always a way in.
Renovating for equity, not for the magazine
The renovation was budget-conscious and deliberately unglamorous: blood, sweat and weekends. The intent was never a dream home. It was sweat equity, a stronger valuation and a plan for a secondary dwelling to lift the property's income. That equity now underwrites the next purchase, which is the whole point of treating property one as a foundation rather than a finish line.
Episode breakdown
- 00:00Preview. Building wealth, strategy and thinking beyond the first step.
- 02:50Twelve months on. Where the purchase with a mate stands today.
- 04:05Finding the Kingston property. The search and what made it stack up.
- 05:00Negotiating after building and pest. Using the inspection to reset the price.
- 06:05Settlement challenges. Working through a difficult vendor.
- 09:55Advice for first home buyers. Getting finance-ready early and what to ask agents at opens.
- 14:45Structuring property one for the future. Thinking beyond first home buyer incentives.
- 18:00Rentvesting, guarantors and other ways in. The alternatives when buying alone is out of reach.
- 24:10The three pillars needed to buy property. Income, cash or equity and credit.
- 25:30Buying with a friend. Co-ownership agreements and the importance of legal advice.
- 29:05The renovation journey. Budget, numbers and valuation growth.
- 33:30The secondary dwelling plan. Lifting income from the same block.
- 41:00Closing advice. Patience and playing the long game.
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Key questions this episode answers
Can you buy your first property with a friend in Australia?
Yes. Co-ownership is an established way to combine deposits and borrowing power and enter the market sooner. The episode's message is that it only works with clear conversations up front and a proper legal co-ownership agreement, drafted with independent legal advice before the purchase.
What should a co-ownership agreement between friends cover?
Each owner's contribution, how costs and rent are shared, what happens if one owner wants to sell or cannot pay, how decisions like renovations are approved and the agreed exit process. Independent legal advice for each party is the non-negotiable step.
Does your first home need to be your forever home?
No, and the episode argues it usually should not be. Treating the first purchase as a stepping stone, with a renovation plan, an equity target and a clear next move, turns it into the foundation of a portfolio. The same thinking is unpacked in episode 96.
What are the alternatives if you cannot buy alone?
Co-ownership, guarantor arrangements, first home buyer schemes and rentvesting. Each has different lending, tax and risk implications, so the structure should be chosen against a long-term plan with qualified advice rather than whichever door opens first.
Who are the guests on episode 95?
Luke and Jem Corrish. Jem shares the full story of buying with his mate Tom: the search, the negotiation, the settlement, the renovation and the equity plan that followed.
The takeaway
The market is hard. It is not closed. Jem's story is proof that a first purchase made with education, a team and a written agreement can do more in twelve months than years of waiting for conditions to soften. Strategy matters from property number one.
The information discussed in this episode is general in nature and does not take your individual financial circumstances into account. Consider whether it is appropriate for your position before acting on it.