💰Hacking the housing market with "co-owning"

We’re already in the middle of 2024 so if you’re still putting off your money goals, this is your reminder (and reality check) that your money will only work if you do. Financial stability doesn’t have to be complicated. With the internet, you have all the tools you need right at your fingertips. Unsure where to start? Tell us about your spending habits and we’ll show you everything you need to know.

- Milan

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THE MONEY BREAKDOWN

“Co-owning”

Today, let's dive into the rising trend of group homeownership among younger generations. With the real estate market being so unpredictable and prices sky-high, many are now considering buying fractional shares of properties and “co-owning” houses. It's similar to timeshares but with actual homes. Brokerages specializing in co-ownership have been riding this wave since 2020, selling about $1 billion in shares across 40 markets. While this sharing economy approach offers a fresh solution to housing affordability, experts warn that co-ownership can come with its own set of challenges and complexities.

Despite some skepticism, interest in co-owning properties is definitely on the rise. Zillow’s 2023 housing trends report found that 1 in 7 people bought property with friends, and 12% with relatives. Opendoor's report showed that over 75% of first-time buyers teamed up with family, friends, or colleagues. This model is a great way for younger buyers to enter the housing market, but it's important to be aware of the potential hurdles and responsibilities that come with it.

MILAN’S HACK OF THE DAY

Set Goals And Create A Plan

Setting specific financial goals and creating a plan to achieve them is a powerful money hack. Having clear financial goals gives you direction and purpose, whether it's saving for a dream vacation, paying off debt, or building an emergency fund. Start by identifying what you want to achieve and setting SMART goals—Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of saying, "I want to save money," say, "I want to save $5,000 for a down payment on a house within the next two years."

Once you have your goals, create a detailed plan to reach them. Track your progress regularly and adjust your plan as needed. Tools like budgeting apps, spreadsheets, or even a simple notebook can help you stay organized and focused. If you’re looking for the perfect all-in-one tool, here’s our recommendation. By setting specific financial goals and following a structured plan, you're more likely to stay motivated and see real progress, turning your financial dreams into reality. Don’t know where to start? We break it down in our customizable money plan. All you have to do is answer a few simple questions here.

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