Everyone has to pay to live. But when you pay rent, you’re basically paying someone else’s mortgage. That’s why co-living and co-owning are becoming more popular. Co-living is an intentional community that provides shared housing for people with shared intentions. Co-ownership is partnering with people (besides your SO) to purchase property and gain an asset. Nikki Merkerson is a wealth-building advocate and expert on these types of arrangements. She tells Bold TV if more young people thought about ownership instead of renting, they would be able to build wealth early.
Build your wealth through co-owning
Many people have a paycheck-to-paycheck mentality. They are in a continuous rat race and may not even be building wealth. Renting doesn’t have a profitable outcome. The amount you pay in rent could be the amount you’d be paying to ultimately own the property. It costs around $1,250 to co-live with someone when you could pay that amount, join with others, and own it. Co-ownership is a tool for young people to save for the future. When you own real estate, you have opportunities to build your wealth. There are always creative ways you can make money off of a property you own.
The dynamics of co-living
We all have horror stories of living with people. So how can you survive co-living? First, join a tribe of people that think like you. Create communities of people who have the same goals. Then, make sure you talk about logistics upfront. Go through house rules and decide on consequences for actions. Have a discussion about everyone’s exit strategy. Make sure all agreements are in writing! Living with others is not easy. But saving for the future may outweigh the challenges for you. Not living paycheck-to-paycheck is a popular goal for young people. Every day, people are thinking of new ways to create financial freedom.