Benefits of Co-owning

Now that we’ve removed the five year rule which is a major hurdle for most people when it comes to getting on the property ladder, what does sequential co-ownership enable?

Climbing the Property Ladder Earlier

In the US the average age a young adult first leaves their parent’s home is at the age of 20, but the average age of a first-time homebuyer is 38. That is a total of 18 years of living somewhere other than in an owned dwelling. Someone could be almost two-thirds of the way through to owning their own home with that amount of time! But for reasons summating in the existence of the 5 year rule, for most of the first-time homebuyers, it might have arguably been a good financial decision to NOT buy up until that point. But this leaves a lot on the table to benefit, and to what could be, by climbing the property ladder earlier. A few of which are 1) Financial Well-being 2) Quality of Living Improvements 3) Sense of Meaning/Belonging.

Financial Well-being

Co-Owning a home can be a great long-term financial move for several reasons:

Building Equity – Instead of paying rent to a landlord, your mortgage payments increase your ownership in the property, which can be a valuable asset over time. Real estate tends to increase in value over the long run, allowing homeowners to benefit from capital appreciation when they sell.

Stable Housing Costs – Unlike rent, which can increase over time, a fixed-rate mortgage provides predictable monthly payments, making it easier to budget. As inflation rises, so do property values and rental costs. Owning a home helps protect against these rising expenses.

Retirement Asset – Making mortgage payments is a way of consistently investing in an asset rather than spending money on rent with no return. A paid-off home can significantly reduce living expenses in retirement and can be sold or leveraged (e.g., through a reverse mortgage) for income.

Quality of Living Improvements

Customization and Personalization - Unlike renters who often need permission, homeowners can freely paint walls, install new flooring, or change fixtures to match their style. They can even go so far as to upgrade kitchens, bathrooms, or even add extra rooms to suit their needs. Homeowners with yard space can also grow their own food, create beautiful gardens, or build patios and fire pits for entertainment with owning a home. Renters are usually limited in making major changes.

Smart Home Improvements - Homeowners can install advanced security systems, cameras, and smart locks without restrictions. Along with smart thermostats & light which are energy-efficient, customizable home automation that improve comfort and save money.

Fostering better Relationships - Homeowners tend to stay in one place longer, which allows them to build strong relationships in their community. This can lead to better school options, neighborhood safety, and overall well-being. And unlike many rental agreements that ban or limit certain breeds and sizes, Homeowners can create pet-friendly spaces like for their animals as well.

Sense of Meaning/Belonging

And if none of these material things matter all that much to you, then this is what homeowners take on the decisions was:

• 79% percent believed buying a home changed them for the better.

• 80% said they would not go back to renting.

• 88% believe that buying a home was the “best decision they ever made”

So if emotional considerations count more than the material facets that come with home owning, then I think these are astounding takes on why one should consider getting on the property ladder earlier.