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I threw this question out to you on Monday — what’s your take on buying a home with a couple of friends? Sure, it helps get around the immense unaffordability of homes in the region for most of the county’s households, but is it a good idea?
I heard from reader LQ in Kearny Mesa:
I grew up, for the most part, in the SF Bay Area and know what sky-high home prices (even in ugly neighborhoods) look like. Since those prices, historically, have almost never moved downwards, residents have become creative in buying property by using TICs (tenants-in-common arrangements). Much like NY has co-ops.
I think it would be interesting to make comparisons to those markets and see if that may be where the SD market may be heading. After all, it was only back in the mid 70’s that my parents bought a cracker-box house in Daly City for $15k and sold (low) for $30k a few years later. Today, Zillow prices it @ $689k
And two readers brought up points affecting near-opposite ends of the age spectrum. Here’s MG:
One thing we keep discussing with our friends is “co-housing” as a way to share costs and life experiences as you age. We hope for a community of friends and family as opposed to a congregate care facility, an oversized but expensively staffed but (hopefully) equity rich house or (shudder) nursing home.
MG shared this link on the co-housing option, too.
And here’s reader JK, representing the post-college set:
i think a lot depends on the age of the prospective buying roommates.
as a 22year old i can attest to the fact that i wouldn’t buy a house with anyone my age. plans change too quickly, commitments are too flimsy, and even among the closest of friends, money can become an issue.
so i would say that unless you have been roommates for many years, have maintained the same job for as long or longer, and are willing to take even then a great risk, i would opt to continue renting.
Anything to add? Click my name below to share your thoughts.