Restored Living | What is Co-Buying?

Co-buying is when two or more people purchase a property together, sharing the costs and ownership.

It’s similar to renting with roommates—you share a home, split expenses, and live alongside others—but with a longer time horizon. Instead of paying rent each month and walking away with nothing, you build equity and share in the property’s growth over time.

Co-buying combines the flexibility of renting with the wealth-building of ownership.

– You own a share of the property.
– You share costs like the mortgage, taxes, and maintenance.
– You build equity as the property’s value changes over time.
– You have a clear agreement outlining rights, responsibilities, and exit options.

Co-buying doesn’t mean living in a commune or giving up your independence. It’s simply a practical way to own property alongside others, with clear structures in place to make it work.
When co-buying, how you hold ownership matters. Your ownership structure affects financing, decision-making, exit strategies, room rentals, rules, and taxes. Understanding these models helps you align your legal structure with your group’s goals and governance style.

This is intended to serve as an introduction, and whether you utilize our attorney or not, it’s required to connect with someone experienced in drafting coliving agreements to walk you through each model in detail:
Tenancy in Common (TIC)

Allows individual mortgages on each share, but many TICs use a group loan.

Flexible in splitting ownership percentages and responsibilities.

Shares can often be sold without dissolving the group, but may require group approval depending on your agreement.

Property tax bills are shared, and all owners are responsible for shared expenses.

Good for: Groups wanting flexibility in ownership and exit, while maintaining straightforward structure. Often used in California and New York for multi-family or shared single-family properties.
Limited Liability Company (LLC)

Limits personal liability for the property’s debts and legal issues.

Ownership interests are transferable, with terms defined by the Operating Agreement.

Allows for clear, customizable bylaws for governance, including voting rules, exit pathways, and how decisions are made.

Tax flexibility (typically pass-through taxation, with potential for depreciation deductions shared among members).

Traditional residential mortgages are often not available; financing typically requires a commercial loan or cash purchase, though some lenders are becoming more flexible.

Good for: Groups wanting clear governance, strong liability protection, structured bylaws, and flexibility for investment or coliving structures.
Cooperatives

Decisions are made democratically within the co-op’s bylaws, often requiring group approvals for transfers or major decisions.

Share loans may replace traditional mortgages, with financing options varying by lender and state.

Often has strict community guidelines, including resale restrictions, income caps, or primary residency requirements, depending on the co-op type.

Monthly fees typically cover mortgage (if applicable), taxes, insurance, and maintenance.

Good for: Groups seeking community-oriented living with democratic decision-making and long-term stability.
Joint Tenancy

Generally not recommended for most co-buying scenarios unless among family or highly aligned groups.

Harder to customize shares or exit individually.

Avoids probate upon death but offers less flexibility in long-term planning.

Good for: Simple, family-based arrangements or very small, trust-based groups where survivorship benefits are prioritized over flexibility.
No matter the ownership model, you will need to decide how structured your governance will be:

Bylaw-Heavy Models: Clear rules on decision-making, finances, house rules, room rentals, and exit pathways. These provide stability and clarity.

Bylaw-Light Models: Flexible, relying on informal agreements, often seen in TICs or family-based arrangements. They’re simpler, and allow for easy transfer of ownership.

Your governance choice will impact:
1. Exit strategies (who you can sell to, pricing, approval processes).
2. Ability to rent out rooms if you need to leave temporarily.
3. Financial planning, reserves, and maintenance.
4. Daily decision-making and dispute resolution.

Choosing your ownership model is a foundation for your co-buying journey. Each model has trade-offs in flexibility, financing, liability, and governance. This overview is meant to help you understand your options and align your choices with your goals.
Summary: Alex joins a co-buying group for a $600,000 home with four others, each investing $30,000. Over 15 years, Alex achieves the following financial gains compared to renting:

Lower Monthly Payments: ~$36,900 in rent savings

Interest Savings: ~$57,366 per co-buyer

Equity Appreciation: ~$109,366
In total, Alex’s financial benefit is approximately $214,837, transforming a $30,000 investment into long-term wealth and housing security. This represents an annualized return on investment of approximately 14.3%, compared to long-term average stock market returns (approximately 10%) and REIT returns (approximately 11%).*

The scenario is based on purchasing a home priced at $600,000 with five co-buyers, each contributing a $30,000 down payment. A 5% closing fee is included, which covers the buyer’s agent, closing costs, and the co-buying service fee. With a net down payment of $120,000, the group secures a 15-year mortgage at 6.0% for $480,000. By combining ownership, the group significantly reduces long-term interest paid, shares costs more efficiently, and unlocks meaningful tax and equity benefits not available to traditional renters.
Sharing mortgage payments among multiple co-buyers enables many groups access to a shorter, 15-year mortgage with a lower interest rate—substantially reducing total interest paid and enabling full ownership much sooner. Example based on a $600,000 property with $150,000 in total buyer contributions (5 × $30,000), including a 5% closing fee that covers the buyer’s agent, closing costs, and Co-buying’s service fee.
Interest Savings
Monthly mortgage cost per co-buyer (5 owners):
Traditional 30-year: $600/month

Co-buying 15-year: $810.40/month
Lower Monthly Housing Costs
Because you’re sharing the mortgage and initial down payment with multiple co-owners, we’ve found monthly housing costs are often lower than market rent—even after accounting for taxes, insurance, reserves, management, and utilities. For comparison, this scenario considers an average Greater Boston rent of $1,200/mo and $150/month in utilities. Both assume a modest increase of 1% per year. However, it’s important to note with renting, you have no control over how much your costs will increase. With co-buying, only your utility expenses are uncertain.
All-In Monthly Housing Cost Breakdown:
Equity Appreciation: Long-Term Wealth Building
Each co-buyer invests $30,000 (totaling $150,000 in equity). After 15 years of 1% annual appreciation, the fully paid-off home is worth approximately $696,830.

Each co-owner's 1/5 share: $139,366

Net equity gain: $139,366 - $30,000 = $109,366

Annualized ROI over 15 years: ~9.8%
Who you co-buy with matters.
When you purchase a property with others, you’re sharing a financial commitment and building a shared life. It’s important to think carefully about who you’re teaming up with and why.

Choosing your co-buying group involves considering:

Financial Compatibility: Do you have similar budgets, risk tolerance, and expectations around money?

Lifestyle Fit: Do you get along well, communicate openly, and have a shared approach to living with others?

Goals: Are you aligned on why you want to co-buy—whether it’s for stability, community, investment, or all of the above?
There’s no single right way to form your group. Some people join an existing group, some create one, and others bring friends they already know. It depends on your goals and what kind of community you want to build.
Living with others over time can bring stability, ease, and a sense of belonging.

You can share tasks like cooking, errands, or maintenance, lightening the load for everyone. You have people to lean on and learn from, building trust and comfort in your daily life. And when you know you’ll be in a place for a while, you can invest in your space together—planting gardens, improving energy efficiency, or creating shared spaces that reflect your collective values.

Co-buying can offer more than a home; it can provide a sustainable, supportive way to live well with others.
Finding the right property is where your group’s vision meets reality. It sets you up for financial success, day-to-day comfort, and long-term flexibility.
Your timeline shapes the type of property you target:

On-market homes are the fastest path, with clear inspections, established comparables, and quicker move-ins.

Value-add properties may need renovations, offering lower purchase prices and upside potential, but require patience and a group ready for improvements.

New construction can take a few years but lets you design your space completely from scratch, aligning it with your exact needs, layout preferences, and long-term vision.
Timing: When Do You Want to Move?
Price: Keeping Monthly Costs in Check
The goal is to have your monthly costs near or below local market rents. This keeps your lifestyle sustainable and ensures strong future flexibility, whether you continue living there, decide to rent out your share, or eventually sell.

We calculate this by taking the property price (plus taxes, insurance, reserves, and utilities), dividing by the number of bedrooms, and comparing it with local rents. If the numbers work, you’re set up for a strong investment that holds up even if plans change.
Location: The Lifestyle Question
Location comes down to personal preference:

More rural often means more land, space for gardens, workshops, and creating a nature-forward lifestyle.

More urban offers proximity to transit, restaurants, co-working spaces, and community events, allowing for a more connected, walkable lifestyle.

Think about what kind of daily life you want and how your location will shape that experience.
From Criteria to Choice
Once you’ve clarified timing, price, and location, we narrow down properties using:

Bathroom count

Room count and layout flexibility

Potential for future expansion

Natural light and ventilation

Walkability and transit access

We use these factors to develop a score for each property, ensuring your decision is grounded in clear priorities, not guesswork.
Thinking Ahead
During your search, it helps to consider potential upgrades for health, comfort, and long-term savings—water and air filtration, natural light improvements, and energy retrofits that lower utility costs while improving day-to-day well-being. While these are finalized after purchase, thinking about them now helps you avoid surprises later.
At the end of the day, finding a place is about matching your group’s timing, financial goals, and lifestyle vision to the right property, setting you up for stability, flexibility, and growth for years to come.
One key point is understanding that despite the seemingly big commitment, you always have options. Life changes, and you aren’t stuck if you need to move.
Ideal Situation:
If you need to leave, you’d rent out your room. Why? Because in the early years of a mortgage, most payments go toward interest, not equity. The real equity growth comes later, so by renting, you let your down payment keep working for you while you live somewhere else. You’ll likely break even or come out slightly ahead, and it’s a straightforward way to step away without giving up your long-term investment. Plus, due to the attractive monthly costs, it’s easy to find a renter, meaning the other roommates should be able to find someone they’d like to live with - and everyone wins.
Alternatives:
But if you need to access your down payment, you can sell your share. This depends on your group’s bylaws, but assuming there aren’t restrictions, there are a few paths:

You can sell to someone who wants to move in and join the community.

You can sell to Restored Living, which will have a pre-set buyback price—usually a bit below market value, but guaranteed and fast.

Most often, people find a new buyer who’s excited to join, paying under market rent while benefiting from long-term growth, making it a win-win.

In an ideal world, you’ll live there or rent out your share through the 15 years, building wealth and stability along the way. But it’s important to know upfront: you have options if you need to get out.