Contact Us: 1(800) 557-8958

An accidental investor: why I bought a house with a friend

An accidental investor: why I bought a property with a friend

I bought a house with a friend when I was 22, but I can’t really brag about it because it wasn’t a decision based on investments, retirement, and all of the other financial things we’re meant to consider after graduating. In fact, it was more a decision based on not being able to do what I wanted when I wanted. It was an also a successful accidental investment.

Let’s me make my confession a little more clear: I didn’t co-buy because it was a smart financial decision. In fact I didn’t even co-buy because rental prices were high. I co-bought a house for three main reasons:

  1. I wanted a dog
  2. I hated giving my money to my annoying landlord every month
  3. I wanted an easy life and didn’t want to have to move every time the rent went up, a roommate wanted to leave, or the landlord decided to sell the property

Yes, I pretty much bought a house because I wanted a dog and I’d had terrible landlords.

I co-bought a house because I couldn’t afford the mortgage or the down payment on my own.

So in the mid 2000s—yes I am a member of the avocado toast loving millennial generation—I bought a house with one of my best friends who was also my roommate at the time. It’s still one of the best financial moves I’ve made in the last 10 years, but it definitely wasn’t the most thought out decision…

An accidental investor

I’d like to be able to say that the 22-year-old version of me was a smart investor, but honestly everything that happened was pure luck. It could all have gone horribly wrong. We had no agreements in place about how long we were keeping the property for, how we’d handle maintenance, what happened if we had a dispute, or what we’d do if one of us wanted to leave. We also had a joint mortgage. This meant that if either one of us got into financial difficulty the other person could see their credit score plummet too. Thankfully my taste in friends was better than my financial planning skills at the time.

10 years on and I’d never co-buy again…

…without a contractual agreement in place.

I know I’m making this sound as though buying my first home with a friend was a stupid idea. It wasn’t. I just realize how lucky I am that it turned out so well. In fact, despite some occasional disagreements, it was pretty damn awesome. So why wouldn’t I do it without a contract again now? I guess the fact that a home in San Francisco could cost $1.2 million makes the process feel a whole lot more significant than it did with my small mortgage back in the 2000s. Plus fresh-out-of-college me really didn’t know a whole lot about protecting my finances and future, whereas current me would really like to retire before I’m 80!

The smart way to co-buy

When I first heard about Home Savvy I was honestly kind of shocked that more people weren’t already talking about how to make co-buying in San Francisco an easy process and a smart financial decision. Especially as the house prices are so high that the chances of owning a property by yourself, even on a high income, are pretty small. What I love about Home Savvy and one of the key reasons that I joined the HS team is that we have a process that not only makes co-buying easy, but also protects the interests of every co-buyer. Home Savvy has already done the hard work of creating the agreements that help co-buyers make decisions, plan for the future, and protect their finances. Basically Home Savvy makes co-buying a smart financial choice by mitigating the risks to your credit and your friendships.

Does co-buying make financial sense for you?

The team at Home Savvy wants your co-buying experience to be successful. That’s why we want to be honest and say that co-buying in San Francisco isn’t going to be the best choice for everyone. However, if you’re planning on staying in the Bay Area for the next couple of years and are currently paying over $1000 in rent per month, it is definitely something you should consider. If you’d like to learn more about co-buying, Home-Savvy, or using our free co-buying concierge service visit today.

A space of my own

I’m going to leave you with my current motivation as a 30-something-year-old for why I’d co-buy a home in San Francisco today:

  1.     I have dogs that weigh over 5 lbs (no more CL hunting for pet-friendly)
  2.     I hate wasting my money on rent, no matter how nice the landlords are
  3.     I don’t want to have to move every time the lease is up

Oddly, my reasons aren’t that much different than they were in my 20s. Except one key bonus reason:

It’s a savvy financial decision and an investment in my future

Share This Listing With Your Network

Comments are closed.

Simple Share Buttons