Most Millennials regret their home purchase. A recent article by Business Insider stated that 64% of Millennials surveyed regretted buying their homes. When you buy your first home, you generally sacrifice something. You start the process all excited about the possibilities. You then realize how much everything costs and start giving up on size, then location, and finally just buy a fixer upper. With housing prices continuing to grow, new homebuyers need a solution that will give them the house they want without having to sacrifice.
What if you could buy with a friend in the same way you rent with friends. I want to introduce you to a new concept called the DubbleUpp. Whenever you buy a house with someone else, we call that a DubbleUpp. You can buy with friends, co-workers, investors, and even new acquaintances.
When I met my wife, she has been renting with the same friend for several years. They both had good jobs and good credit, but neither wanted to buy a place because nothing appealed to them qualifying on their own. They continued to live together for another year before my wife moved out to try a travel nursing position. Don’t worry – I had a job where I had to travel and got to pick customer visits near her cities. If they had owned the property together, she easily could have leased her room while traveling and then decided later if they both wanted to sell or keep the property. This is a common story. You rent with the same people for years and pay someone else’s mortgage. If you have money to split a down payment and split the mortgage payment, this type of DubbleUpp is perfect for you.
The other option for a DubbleUpp is to buy with an investment partner. Many renters have the money to pay a potential monthly mortgage, but they don’t have the down payment. It will take them several years to save up enough and, during that time, they are missing out on possible real estate appreciation. If they get paired with a DubbleUpp investor, the investment partner will pay the down payment and all closing costs. In this situation, the investor does not live in the property. The person living in the property pays the mortgage and any monthly expenses associated with the house. After 5-6 years, you can sell the house and both make a profit or negotiate a sale to one of the owners.
You can even mix and match a DubbleUpp. You could have an investment partner pay the down payment and closing costs and then split the monthly mortgage payment with someone.
With these creative home purchase options, new homeowners can end the regret and start getting excited about the possibilities.