Texas women say ‘houses before spouses’ after buying properties together; real estate expert weighs in
The Austin, Texas, friends started a real estate company to help young adults buy their first home
The cost of housing in America will continue going up: Barbara Corcoran
In a wide-ranging interview on 'Cavuto: Coast to Coast,' The Corcoran Group founder and 'Shark Tank' star Barbara Corcoran addresses market trends and challenges in real estate.
Two friends are taking on the challenge many young adults have faced — purchasing their first home — and attempting to squash the struggle.
Kristina Modares and Stephanie Douglass are co-founders of Open House in Austin, Texas. They work to help people purchase their first home — with friends.
The pair, who originally met through social media in 2016, said they started purchasing homes together years ago in an effort to make ends meet and build equity, they told SWNS.
HISTORIC WASHINGTON DC HOME THAT'S WELCOMED PRESIDENTS BIDEN, OBAMA, CLINTON IS FOR SALE AT $10M
"People are shocked about buying with friends, but I think in the next five years it will be normal," Modares predicted.
Douglass said she started her career as an elementary school teacher. She purchased her first property, a $305,000 home in Austin, Texas, with a friend in 2018 after she was turned down for a loan.
Two friends said they bought their first house together (not pictured) as an investment — and didn't feel the need to wait until they had spouses to begin purchasing property. (iStock / iStock)
Today, after renovating and renting out the property, she said she nets $2,000 a month from the rent.
Modares purchased her first property, a $130,000 triplex in San Antonio, Texas, with a friend in 2017 after putting a 20% deposit down and splitting the rest equally.
The pair then sold their property over a year ago for $200,000.
TIKTOK GEN Z CREATORS REVEAL HOW MUCH THEY'RE EARNING, HOW THEY BUDGET IN HOT ‘PAYDAY ROUTINE’ TREND
"If you partner with someone, it’s the easiest way to get in and get started," Modares told SWNS after revealing that she was living on $20,000 a year when she first moved to Austin in her early 20s.
After meeting through Instagram, the pair, now in their mid-30s, became friends and bought their first property together in 2018 — a $240,000 commercial space.
Kristina Modares, left, and Stephanie Douglass, right, met over social media and became fast friends after realizing their views on purchasing homes at a young age were aligned. (Open House Austin / Fox News)
In 2019, the two started a real estate business to help others purchase their first home in an unconventional way as well.
Since then, Douglass and Modares have purchased another home with a third friend for $155,000; a lake house with a third friend with a purchase price of $475,000; and a house with three other people costing $775,000, per SWNS.
"For women in their 20s, it’s common to hear, ‘I’m waiting until I get married to buy a house.’"
With multiple properties tied to their name, the pair said they didn’t feel the need to wait to purchase a home until they found a spouse — something they said is still often heard today.
"For women in their 20s, it’s common to hear, ‘I’m waiting until I get married to buy a house,’" Douglass said.
The pair started their own company to help young adults purchase homes in Austin, Texas. (Open House Austin / Fox News)
"Our mission," said Douglass, "is to remove those barriers and make it feel possible for women to own homes before they’re partnered — to look at it as more of an investment."
Together, the pair told Fox News Digital they now own over 20 properties together, each with shared mortgages.
TIME TO SELL YOUR HOME? HERE ARE 3 QUESTIONS TO ASK YOURSELF
When asked if they've ever run into any disagreements or issues while owning properties together, Douglass said that most of their experiences have been "positive and fruitful."
Still, they advised anyone else who might be looking to purchase a property with a friend to be cautious.
"You definitely want to be sure that the friends you’re partnering with are responsible and clear communicators," Douglass noted.
Today, the pair said they've helped over 100 people a year purchase homes — and within the last year, 30% of those purchases were done with friends. (Open House Austin / Fox News)
She added, "Credit score is a factor, and so is financial position, cash reserves and buying power. All of this needs to be out on the table before an operating agreement is signed, and especially before a property is bought together."
Important considerations
Rogers Healy, owner and CEO of Rogers Healy and Associates Real Estate based in Dallas, Texas, told FOX Business that although "the idea of co-owning a home with individuals outside your family or spouse may seem like an enticing offer," he recommends considering three scenarios.
REAL ESTATE EXPERT'S ADVICE TO HOMEBUYERS: ‘DON’T BUY' AMERICAN DREAM HOME NOW
First, he said it's important to understand that purchasing a home with others may mean that you could be financially vulnerable.
"Varied financial circumstances, spending habits and unforeseen expenses may strain relationships and jeopardize the stability of the investment," he said.
Purchasing a home with others may mean that you could be financially vulnerable, said one real estate professional.
Additionally, he said, "Without clear contractual terms, disagreements over property management, expenses or future decisions may escalate into legal conflicts, leading to further costs."
He also noted that "conflicting preferences regarding property usage, maintenance or investment strategies can result in conflict and decision-making."
CLICK HERE TO READ MORE ON FOX BUSINESS
Modares said she is seeing more and more buyers purchase homes with friends.
"People are realizing that buying with a friend is possible and is actually not that different from buying with a romantic partner or family member," she said.
Two women started a real estate business on the basis of "houses before spouses." It's an effort to teach young people how to purchase homes without a romantic partner or spouse — but maybe with a friend. (Open House Austin/iStock / iStock)
She added, "Just because you’re not married doesn’t mean you have to wait to buy a house!"
CLICK HERE TO SIGN UP FOR OUR LIFESTYLE NEWSLETTER
Since the start of Open House in 2019, Douglass said the pair have helped roughly 100 people purchase homes each year — and about 30% of them were purchased with friends in the past year.
For more Lifestyle articles, visit www.foxbusiness.com/lifestyle.