Buying a Portland Home – with a little help from your friends

In the early 1970’s, Portland activists organized to collectively buy a home in Northeast Portland. They called it “Terrasquirma”. The idea was that by sharing the mortgage and other costs of running the household, the owners could have more time and resources to devote to their various causes. It worked – among other things, Terrasquirma’s residents created a recycling network that laid the groundwork for the city’s first municipal recycling system.

Terrasquirma dissolved in 1979, but cooperative housing hung on in Portland. More recently, people who have no activist inclinations whatsoever have also begun to see the benefits of sharing a home title.

The advantages of home ownership are well understood – tax breaks, a sense of freedom and security, an investment that can pay off down the road. We’ve also written on this blog about the fact that owning a home is nearly always cheaper than renting.

Thought that home-buying was only for couples or individuals with a generous income?
Not true! In fact, if you’ve been roommates with someone for a while and have a proven history of successful cooperation and co-habitation, you’re probably better qualified to go in an a house together than many newlyweds.

Co-buying can also work for parents who want to help their kids buy a home, domestic partners, and any other group of people who would benefit by sharing a down payment, mortgage and a home.

Of course, as with any financial commitment, the parties involved should take a clear and honest look at their compatibility. Best friends don’t always have the same values when it comes to making timely payments or investing in home repairs. Ask as many questions of your potential co-owner as possible!

When you’ve vetted all of the possible scenarios, it’s time to get nitty-gritty. Realtor.com has a helpful article on home buyer with others. According to the article,

“Co-buyers who aren’t married to each other may share a title as tenants in common (TIC) or as joint tenants with right of survivorship (JTWROS).”

The decision to create a TIC or JTWROS arrangement comes down to two questions: Do the owners want to have equal or unequal shares in the property, and how do they want those shares to be passed on?

A lawyer can help you decide how to share the title and write a co-ownership agreement that will lay out how to share ongoing expenses and sell a share if necessary.

Home ownership doesn’t have to depend on your getting married, being promoted, winning the lottery – or joining a commune. Modern-day housing co-ownership is gaining popularity in Portland, freeing individuals’ time and resources to do whatever it is they love to do. Contact your Portland real estate agent today to take advantage of low winter home prices!