Buying a home these days can feel overwhelming with rising costs and mortgage rates squeezing budgets. If you’re finding it hard to move forward, co-buying might be worth exploring. As Freddie Mac puts it:
“If you are an aspiring homeowner, buying a home with your family or friends could be an option.”
It’s not a decision to take lightly, but it’s one that’s helping many buyers today. Let’s talk about why co-buying is gaining momentum and see if it might work for you.
What Is Co-Buying?
Co-buying is the process of purchasing a home with someone else, such as a friend, sibling, or even a group of people. With rising home prices and mortgage rates, more buyers are exploring this option.
A survey by JW Surety Bonds found that nearly 15% of Americans have already co-purchased a home, and another 48% are open to the idea.
Why Co-Buying Might Be a Smart Move
Curious about co-buying? A survey revealed some of the top advantages buyers see in teaming up. Take a look at the highlights below (check out the graph below):
Shared Costs (67%): Buying a home is a significant financial step, but co-buying helps by splitting expenses like the down payment and mortgage payments.
Bigger Opportunities (56%): Combining financial resources could let you afford a bigger or better home, whether it’s an extra bedroom, more outdoor space, or a location you love.
Investment Potential (54%): A co-purchased home can also serve as an income-generating asset. Renting it out could provide passive income for both parties.
Divided Duties (48%): Homeownership involves ongoing maintenance and responsibilities, but co-buying allows you to share the workload, making it more manageable for everyone.
Key Points to Keep in Mind for Co-Buying
Co-buying can make homeownership more accessible, but it’s essential to plan carefully. Rocket Mortgage highlights:
“Buying a house with a friend or multiple friends might be a great way for you to achieve homeownership, but it’s not a decision you should make lightly. Before diving in, make sure you understand the financial and logistical hurdles you’ll face, as well as the human and emotional elements that might affect the purchase or, more importantly, your relationship.”
To ensure a smooth process, discuss upfront how costs will be divided, who will handle specific responsibilities, and what steps to take if one of you decides to sell. Leaning on a trusted real estate professional can help you navigate these challenges and create a plan that works for everyone.
Bottom Line
Co-buying can be a practical way to navigate today’s affordability challenges and take the first step toward homeownership. Careful planning and clear agreements are essential. Let’s connect to see if co-buying is the right choice for you.