Good morning!This week we’re talking co-buying, mortgage rates and cool grandparents. This issue of Money Moves was written by Aly J. Yale.
Team up to move up
Kiersten Essenpreis for Money
It’s hard to ignore how expensive buying a home has gotten. House prices rose steeply over the last few years, and with mortgage rates now hovering above 6%, many people just don’t have the funds to become homeowners anymore — at least on their own.
If they pool their resources with a friend or family member, though? There may be a chance.
It’s called co-buying, and as mortgage payments surge, it’s something more and more homebuyers are opting for. In fact, according to Zillow, nearly two out of every 10 recent buyers bought a home with someone they’re not in a romantic relationship with.
There’s David Sheppard, who bought a house with his older sister, Lois. And bandmates Stephen and Anthony, who went in on a Long Island property last year. There’s even Greg Gaudet, who was brave enough to buy a place with his in-laws.
For some, it’s a great arrangement, allowing buyers to split the down payment, share in the mortgage costs and enjoy some much-needed company at home. Others, though, are cautionary tales — a reminder that not everyone is meant to live under the same roof, no matter how much it saves you in the long run.
As Gaudet puts it, “It’s just awkward, and I feel like I can never have complete privacy.”
With mortgage rates nearly double what they were this time last year, it’s more important than ever to shop around for a lender.
It can mean the difference between a 6% rate and a 7% one or, as Money reporter Leslie Cook explains, “thousands of dollars in savings” in the long haul.
She’s not exaggerating, either.
Lenders vary widely in the products they offer, as well as the fees and rates they charge, so comparing at least a few options is critical when preparing to buy a house.
But how, exactly, do you do that? Leslie breaks down the process in her latest.
Forget downsizing. Seniors these days are “funsizing,” designers and architects say — transforming their vanilla properties into luxury fun houses both they and their grandkids can enjoy.
They’re building private boat docks, spas and playrooms. Installing lavish tree houses and full-on movie theaters — some with custom concession stands to boot. Pickleball courts, juice bars and boxing gyms are also popular asks.
As designer Michelle Nussbaumer puts it, “Why not create your own fantasy with all the bells and whistles? Life is short. Let’s make it beautiful.”
Amen, Michelle. Amen.
Happy hunting,
P.S. Spot a weird or unique home listing? Share it with me on Twitter, where I’m @alyjwriter, or via email at alyjyale@gmail.com.
P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this email or send them to the Money Moves subscription page.
Money’s Essential Home Buying Resources: Winter 2023
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