Thinking About Buying a House with a Friend? It’s More Normal Than You Think

When you’re working out your budget to buy a home and the numbers don’t make sense, it’s not necessarily your fault. You can budget, save, and cut back all you want, and home prices will still surge beyond what you can afford. If your goal is to create stability for your family by owning a home, this can hit hard. 

However, there’s an option you may not have considered – buying a house with a friend. Co-buying a home with a trusted friend might be the workaround you need to not only own a home but have money left over for things that matter.

Why moms are teaming up to buy homes

Today, a 20% down payment on a median-priced home sits at around $80,000. Given the skyrocketing trajectory of home prices, it won’t be long before it doubles.  Many moms have done the math and decided it’s not worth spending a decade saving money that might not be considered a decent down payment when the time comes. The problem is that buying a home solo is no longer affordable, and many single-income households have extremely tight margins. Buying a house with a friend gives you the leverage of two incomes without a traditional relationship or marriage. 

Anything that makes homeownership more affordable is a survival strategy. When you buy a home with a friend, you’ll both hold on to more of your cash flow and will have money available for things you’ve been putting off. For example, you might be able to pay for childcare, pursue a hobby, travel with your kids, start a business, or take a real vacation. 

Co-buying frees up your money for living life

If co-buying a home sounds like a good way to save money, you’re not alone. Rocket Mortgage surveyed potential home buyers and found that 64% of people willing to co-buy a home are motivated by affordability. Saving money when you have kids is a no-brainer. 

Buying a home solo can tie up your money and force you to sacrifice things that make life enjoyable. Co-buying changes that. By splitting a mortgage, utility bills, repair costs, and property expenses like taxes and insurance, you can cut your housing expenses significantly. Life expenses can stack up fast, and when you split housing costs with a friend, it frees up the money you need to live comfortably.

The more money you save on housing costs, the more money you can invest in building a business or starting a savings account for your kids. Saving money on housing can also reduce the pressure and stress you feel around finances.

You don’t have to do everything alone

If you’re a single mom, you’re probably used to doing just about everything alone. For decades, Western society has been heavily focused on independence, but community is becoming a priority again. If you live with your family, living with a friend can create a strong sense of support and community for both of you. 

Sharing a home with a friend who also has kids can be a huge benefit for both of you. You can share responsibilities like picking up your kids from school, doing grocery runs, and more. Just having another responsible adult in your household can lighten your load significantly and make emergencies easier to manage. Kids also benefit when they grow up with stable, supportive adults who take an active interest in their lives.

Protect your friendship with a written contract

Just like any business partnership, entering into a homeownership agreement with a friend carries some risk. You can expect some disagreements, so it’s critical to protect your friendship by putting everything in writing. For example, it’s important to outline how bills and maintenance are handled, whether ownership is 50/50 or something else, how the mortgage gets paid, and who is responsible for what day-to-day. Once you agree on responsibilities and ownership percentages, put everything in writing so you have an official record to refer to in case there’s a misunderstanding.

You don’t need to put your life on hold to own a home

Realistically, saving for the next decade just to buy a home doesn’t make sense when you can team up with a friend and get a home sooner. Buying a home with a friend isn’t traditional, but it’s practical and beneficial when your goal is to provide a stable environment for your family.