Friends buy houses together. Here’s why.



Millennials may not be having kids or getting married right now, but this generation is investing in home ownership – with a twist. They co-buy houses with friends.

“We’ve divided everything in three ways so it’s cheaper to live,” said Amanda Scheider, 30, who lives in Gallatin, Tennessee, with close friends Kathy Keel, 30, and Stephanie Vandergrift, 28. . “If you have good friends you have a lot in common and you can hang out pretty much anytime… it’s like a permanent sleepover.

The trio started out as roommates renting a home in Goodlettsville, but they now own and live in a three-bedroom, 2-1 / 2-bath single-family home on 1.25 acres of land. The two story red brick home features a bonus room, office, and finished garage. Their mortgage of $ 315,000 is expected to be paid off in 30 years.

A single family home belonging to three millennia in Tennessee.Arleen Aguasvivas / NBC News

“We don’t plan on going anywhere,” Schneider said. “None of us are dating right now. We are all focused on our careers. So for now, yes, that’s for the foreseeable future. We plan to stay.

They found the house in April 2020 and bought it a month later.

Women are part of a growing home buying trend as the housing market becomes increasingly unaffordable for middle-class families, real estate experts say.

The number of homes bought by people with different last names increased by nearly 772% from 2010 to last July, according to real estate analysis firm Attom Data Solutions. This includes friends, roommates or married couples who purchased single-family homes and condos nationwide during that time period, according to Atom.

The co-buying is the result, in part, of a “really tough” housing market, said Daryl Fairweather, chief economist at real estate brokerage firm Redfin.

“We have built fewer homes in the last decade than we have in any decade dating back to the 1960s,” Fairweather said. “It’s very difficult to do things like plan for the next steps in life, like starting a family, when you can’t even get past the hurdle of owning a home. ”

Unlike previous generations, millennials marry and have children later, if not at all, and wear a on average nearly $ 90,000 in debt, according to an Experian study on consumer debt.

Sixty-three percent of millennials haven’t saved money for a down payment on a home, says List of apartments.

And, of course, those who venture into buying a home are navigating a pandemic economy.

“Before the pandemic, about a third of homes sold in less than two weeks, but now it’s almost half of homes that sell in less than two weeks,” Fairweather said. “A big part of it has been how competitive the housing market is. ”

With the era of ultra-low mortgage rates over, it will become more expensive to borrow money to buy a home, she said, making co-buying with friends more appealing than ever.

For those considering the idea, economists advise drafting a formal, written co-purchase agreement that includes the terms of various scenarios, including ending the arrangement or options to buy out a friend who chooses to leave.

Kathy Keel cleans the floor in her dining room.Arleen Aguasvivas / NBC News

Schneider, Keel and Vandergrift said potential buyers should prepare for a crash course in maintenance and overall adult adventures.

“I didn’t expect the amount of work or money that would go into it,” Vandergrift said.

The Friends spent around $ 1,500 on renovations and are still planning to update the kitchen and floors, which they say will be expensive.

Even with the added expense, the women said they have no regrets about buying a house together and hope it will welcome their friendship for years to come.

“It’s like the best life situation I’ve ever had,” Keel said.



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