The Math That Changes Everything
Let's start with the numbers most people haven't run. A $650,000 home in Greater Boston with a 20% down payment and a 6.8% mortgage rate creates a monthly payment of roughly $3,800 — before taxes, insurance, or maintenance. No wonder 72% of Massachusetts renters say they want to own but can't.
Co-buying with three people changes the entire equation. The down payment splits three ways. The mortgage splits three ways. And the equity? That belongs to each person individually, in proportion to their ownership share.
| Cost | Solo Purchase | 3-Person Co-Buy |
|---|---|---|
| Home price | $650,000 | $650,000 |
| Down payment (20%) | $130,000 | $43,333 per person |
| Monthly mortgage | $3,800/mo | ~$1,267/mo per person |
| Property tax share | $700/mo | $233/mo per person |
| Insurance share | $150/mo | $50/mo per person |
| Total monthly cost | $4,650/mo | ~$1,550/mo per person |
The average Boston renter pays $2,800 per month. Co-buying brings your cost to $1,550 — while building equity every single month instead of zero.
Equity: The Number Renters Never See
Every mortgage payment you make has two parts: interest (which goes to the bank) and principal (which reduces your debt and builds your equity). In the early years of a mortgage, most of your payment is interest. But your equity grows from two directions simultaneously: principal paydown and property appreciation.
In Massachusetts, home values have appreciated at an average of 6–8% annually over the past decade. Even in a conservative 4% appreciation scenario, a $650,000 home grows to roughly $790,000 in five years. Your one-third share of that appreciation is $46,667 — on top of the principal you've paid down.
| Equity Source | 3 Years | 5 Years | 10 Years |
|---|---|---|---|
| Principal paydown (per person) | $8,200 | $14,400 | $33,000 |
| Appreciation share (4% annual) | $27,500 | $46,700 | $97,000 |
| Total equity per person | $35,700 | $61,100 | $130,000 |
| Renter equity same period | $0 | $0 | $0 |
Tax Benefits That Renters Don't Get
As a homeowner (even a co-owner), you qualify for tax deductions that renters never see. Each co-buyer can deduct their proportional share of:
- Mortgage interest — typically $12,000–$18,000 in the first years of a 30-year mortgage
- Property taxes — up to the $10,000 SALT deduction cap
- Points paid at closing — can be deducted in the year paid or amortized over the loan
For a co-buyer in the 22% federal tax bracket, this can mean $3,000–$5,000 in annual tax savings versus renting. Over five years, that's $15,000–$25,000 in additional effective savings — none of which shows up in the simple mortgage payment comparison.
What About the Down Payment?
The down payment is where most people get stuck. $130,000 for a solo purchase in Massachusetts is a 10–15 year savings goal for the average professional. Co-buying doesn't just cut that in half — it cuts it by two-thirds if you're buying with three people, or by three-quarters with four.
At Restored Living, our group matching algorithm connects you with co-buyers at a similar financial stage. You don't need to find three friends who all happen to be ready to buy at the same time. We do that work. Once your group is formed, our financing guidance walks you through how co-buyers structure and present their combined down payment to lenders.
The Real Cost of Waiting
Here's what the math people rarely run: the cost of not buying. Every year you rent in Massachusetts, you pay $33,600 (at the Boston average of $2,800/month) toward someone else's mortgage. Over three years, that's $100,800 — gone, with nothing to show for it.
Meanwhile, that $650,000 home you didn't buy three years ago is now worth $777,000 at 6% annual appreciation. The gap between where you are and homeownership just got $127,000 wider. This is the trap. And co-buying is one of the few legitimate exits from it available to ordinary professionals in Massachusetts today.
Is Co-Buying Right for Your Financial Situation?
Co-buying works best for people who:
- Have a stable income but lack the savings for a solo down payment
- Are comfortable with a 3–10 year time horizon before selling or transitioning
- Want real estate exposure without taking on a $650,000 liability alone
- Are open to sharing living space with people they trust
It's not for everyone. If you plan to move cities in 18 months, co-buying may not make sense. But for the majority of Massachusetts renters paying $2,500–$3,500 per month, the financial case is difficult to argue with: co-buying is cheaper than renting and builds wealth that renting never will.