Asset Rich. Flexibility Poor

Michael’s story is illustrative only and does not constitute financial advice. Independent legal, financial and tax advice should always be sought.

I bought my two-bedroom apartment in Parramatta years ago.

At the time, it made sense. It was close to work, it felt like a solid decision, and I was proud of it.

But life doesn’t stay static.

I started wanting more space. A backyard. Maybe even a dog. I couldn’t picture myself living in the apartment long term anymore — but I also couldn’t picture selling it.

And that’s where I got stuck.

The Problem No One Talks About

Most of my money was tied up in the apartment.

Selling would mean transaction costs and tax considerations.
Renting it out wouldn’t free up enough capital to comfortably move forward with buying somewhere new.

I didn’t want to overextend myself just to upgrade my lifestyle.

But I also didn’t want to stand still.

“I still believed in the property. I just didn’t want it to be the only thing dictating my next move.”

Exploring Something I Hadn’t Considered Before

Instead of asking, “Should I sell or not?”
I started asking, “Is there another way to structure this?”

That’s when I began exploring co-ownership.

Through Letterbox, I connected with someone who was looking to buy in Parramatta but couldn’t purchase alone.

We took it slowly.
We got independent advice.
We had the property valued.

Eventually, we structured a defined-share arrangement.

She purchased a 50% interest in the apartment.
I retained the other 50%.

The existing mortgage was partially reduced, and we formalised everything in a co-ownership agreement drafted by lawyers.

Nothing informal.
Nothing rushed.

What It Changed For Me

Selling half released capital.

It didn’t eliminate risk.
It didn’t magically solve everything.

But it reduced my exposure and gave me flexibility.

Instead of holding the entire asset on my own, I was sharing responsibility.

That shift made it possible for me to start seriously exploring a house purchase that suited how I actually want to live now.

“It wasn’t about maximising anything. It was about balance.”

We Built in an Exit

From day one, we documented:

• How expenses would be shared
• What would happen if one of us wanted to exit
• A defined review period
• Buyout mechanisms

There’s clarity around how this ends — not just how it starts.

That mattered to me.

What I Learned

Before this, I thought property decisions were binary:

Sell.
Or hold.

But for me, there was a middle ground.

Partial co-ownership gave me a way to transition — without walking away entirely or taking on more than I was comfortable with.

I didn’t want to choose between keeping what I’d built and moving forward.

I just needed a structure that let me do both — carefully.

Important Note

This example is illustrative only and does not represent typical outcomes. Property ownership and co-ownership arrangements involve legal, financial and market risks. Individual circumstances vary. Independent legal, financial and taxation advice should be obtained before entering any agreement. Letterbox does not provide financial product advice, financial services or hold funds.