In your situation it is probably worth setting up some sort of partnership agreement. Or alternatively set up a company or unit trust and purchase the property in them.
Key issue with unit trust option is that you and your friend would have to borrow the money personally and then buy units in the trust as banks can be a bit closed minded about lending to unit trusts.
Key issue with company option is that you have to comply with the ASIC rules but given that it is a private company they are not much to worry about. There is also an annul registration fee of a couple of hundred. The company would be able to borrow the money, and you and your friend could be share holders of the company.
In both cases tax returns would need to be filled out by the entity (not to onerous though once you have done it once).
