Can’t afford a house? Buy with your friend (or your in-laws)

Plus, shop til you drop

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  January 21, 2023 | Issue #76

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. No, really — I heard it myself. 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.” For more: The Pros and Cons of Buying a House With Your Friends What a home’s worth: Home Values Are Falling the Most in These 7 Cities   Shop til you drop Jose Velez / Money 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. For more tips: Shopping Around for a Mortgage Is More Important Than Ever. Here's How to Do It Mortgage rate forecast: Here's How Low Mortgage Rates Could Drop in 2023   Rents slide in the South If you’re still in the rent race, there’s finally a glimmer of hope: Falling rents in a number of big U.S. cities. A new report from real estate brokerage Redfin shows that median rents are down in at least nine metros.  Here’s a look at the places where conditions are easing for renters: For more: Rent is Finally Getting Cheaper A sign of the times: Here's a Key Sign the Housing Market Is Shifting in Advantage to Buyers   To grandmother’s house we go Getty Images 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 On the hunt? Check out Money’s Mortgage Calculator, list of The Best Mortgage Lenders and look at the latest mortgage rates. Thinking of refinancing? Our list of The Best Mortgage Refinance Companies can help. You can also use our Mortgage Refinance Calculator or these refi tips. Key question: How much house can I afford?   This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money. Privacy Policy • Advertise With Us • We're Hiring! To stop receiving these emails, unsubscribe or manage your email preferences. Copyright ©2023 Money Group, LLC. All rights reserved. Metro Office Park Calle 1, Building 7 Suite 204, Guaynabo, Puerto Rico 00968, USA