Breaking into Boston’s Real Estate Market: The Rise of Co-Buying

This trend, gaining traction in the Greater Boston area, offers a creative solution to navigate the hurdles of the expensive real estate market. In this blog post, we explore the surge in co-buying, its advantages, and the crucial steps to ensure a successful joint property ownership venture, all while optimizing for improved SEO performance.

The Co-Buying Trend

As housing costs continue to soar in Boston, co-buying emerges as a practical solution for individuals who find the market hard to navigate independently. Zillow's Senior Economist, Orphe Divounguy, reveals that 26% of buyers opted for co-buying arrangements last year, marking a substantial 10% increase in just one year.

Co-buying allows individuals to pool resources, making it easier to secure a mortgage approval by providing a larger down payment.

Legal Considerations

Megan Ritter, Associate at Griffin Law LLC specializing in real estate, business law, and litigation, emphasizes the importance of setting up co-buying arrangements correctly. Whether the goal is short-term market entry or long-term property investment, legally binding documents such as cohabitation agreements are crucial. These agreements outline rights and responsibilities, ensuring a clear understanding of the joint property venture.

Navigating Mortgage and Financial Aspects

While co-buying doesn't necessarily complicate the mortgage process, Ritter warns of potential risks. She stresses that, regardless of the relationship dynamics, the bank will expect timely payments. If one party fails to meet their financial obligations, it can lead to foreclosure and adversely impact credit scores.

Local Perspectives on Co-Buying

To gauge community sentiments, Boston 25 News visited Jamaica Plain, where the median listing price has surged by 18% to $870,000 in the last year. Residents expressed varying opinions, with some highlighting the practicality of co-buying as a means to access the market, especially for those not in traditional living situations.

As more than half of the homes in the Greater Boston area sell above list price, the co-buying trend offers a lifeline for those struggling with affordability. By understanding the legal intricacies, financial responsibilities, and community perspectives, individuals can make informed decisions when embarking on a joint property ownership journey. Breaking into Boston’s real estate market is challenging, but co-buying is proving to be a viable and collaborative solution.