Co-Buying has gained popularity in the past few years but with housing prices at an all-time high, up more than 43% over the last 2 years, and a recession looming, buyers are seeking smaller mortgages, and “house hacking” has quickly become the new norm. Launching today out of beta, Pairadime, a new end-to-end fractional ownership solution on a mission to simplify the co-buying process, conducted a survey of 1000 millennials in the US around their outlook on home buying. It turns out that millennials are looking for smart solutions to achieve their home ownership dreams.
Historically, people who purchased homes were married couples and single people. Now, with marriage rates declining, home prices out of reach, and interest rates increasing, the profile of today’s homebuyer has drastically changed, but there hasn’t been a solution to address the new norm. According to the survey only 4% of millennials say they are waiting to buy until they get married.
The Sad Scene:
According to a recent Zillow survey, half of new homebuyers said the process “left them in tears,” with Gen Zers and Millennials “far more likely to cry at least once during their home-buying journey. According to Pairadime’s findings, 36% would be willing to surrender their independence and move home to save money for their dream home. And those who did buy a home with an unmarried romantic partner and then broke up, realized they had no legal recourse and went through a “Millennial Divorce”
No More Handouts
Despite all of this, Millennials aren’t the freeloaders they are perceived to be. While recent reports suggest that the bank of mom and dad has been the wind beneath many millennials’ wings when it comes to buying a house, Pairadime’s study found that 2.5x more millennials said they would prefer to receive financial assistance from their parents as a co-investment rather than a gift (51% versus 21%).
I Get By With a Little Help from My Friends (Family and Experienced Co-Buying Realtor)
While Millennials aren’t looking for a handout from their parents, 45% said they are looking for a real estate agent who is experienced in co-buying to help them through the process, and 36% say they would co-buy with someone they weren’t married to if it meant they could get a bigger mortgage. When it comes to who they are willing to live with, 60% say they would prefer to co-buy with a family member, friend, or a person they matched with from an open marketplace, compared to only 25% who said they would prefer to work with a corporation who took equity in exchange for financial assistance.
Enter Pairadime, an end-to-end fractional ownership solution that empowers home buyers to unite to co-buy primary residences, vacation homes, and investment properties. Pairadime is on a mission to make home ownership more accessible by making it easy for unmarried couples, family members, and friends to own real estate together. Co-buyers get paired with Pairadime’s network of co-buy certified agents and mortgage brokers, and have unlimited access to Pairadime’s custom tools that take them through every step of the co-buying process to overcome all the potential pain points that co-ownership can bring. The co-buyers that use Pairadime own 100% of their property.
The value Pairadime provides to prospective home buyers includes:
- Finding compatible co-buyers
- Creating clarity and building consensus across the group
- Protecting finances and relationships through legal agreements
- Connecting with a co-buying certified real estate agent
- Pairing with an experienced co-buying mortgage specialist
“This study demonstrates just how eager millennials are to get into the housing market, and how willing they are to pool resources with a family member, friend, or romantic partner to do so”, said Joe Hoppis, CEO and Co-founder of Pairadime. “Pairadime is about empowering people to come together to 100% own the properties themselves, making homebuying simple, attainable, and affordable. Our goal is to unlock this dream for everyone, providing opportunity, financial benefits and security.”
Pairadime operates across all of the U.S. and Canada. It works with both individual real estate agents and entire brokerages, as well as mortgage brokers and lenders on a subscription basis.
“Mortgage and real estate professionals across the country are seeing first hand how challenging it is for individuals to get into the housing market nowadays,” said Brian Dracup, COO and Co-founder of Pairadime. And when people are teaming up to buy property together, they have no way to easily navigate the myriad complexities that exist when buying property with someone else. Our certified real estate professionals provide both co-buy expertise and free access to Pairadime’s tools so that they can continue to be the trusted advisor that homebuyers need.”