Ways to lower your insurance premiums

Question:

Like a lot of younger people, we want to start saving for a first home. How much can we save by moving in together?

Answer:

While many people would like to get married, marriage levels have declined substantially. According to the Census Bureau, the marriage rate in 2018 was 6.5 per 1,000 people, down from 10.4 per 1,000 people fifty years ago. One result is that many adults now share apartments and homes. A 2023 study by Realtor.com and HarrisX found that “70% of all respondents who have moved in with a partner reported that they were able to save money by moving in.” e most common amounts saved per month, according to the study, were:

$1- $500 (27%)

501 - $1,000 (20%)

$1,001 - $2,000 (13%)

$2,001 - $5,000 (6%)

More than $5,000 (4%)

While monthly savings may sound attractive, there can be complications.

“Living with a romantic partner might bring a couple closer together, but it can also magnify potential issues in a relationship,” said Realtor.com’s Executive News Editor, Clare Trapasso. “While the idea of splitting the rent or mortgage can be very attractive, it’s important to have tough conversations with your partner and think through how living together will work before you take the plunge.” ird, local housing costs vary and that means

First, an apartment lease can make each tenant responsible for the rent, all the rent. In other words, if someone moves out the landlord still needs to be paid in full. It’s important for tenants to have reserves, and it’s a good idea to have a tenant agreement prepared by a legal clinic or attorney.

Second, if the idea is to go in together to buy a home, the co-borrowers should speak with a local attorney. Look into co-ownership agreements as well as wills and related paperwork. Among other issues, consider what happens if someone loses a job or wants to sell.

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By Peter G. Miller

location plays a big part in possible savings.

“Rents have skyrocketed in New York in the past year,” says RentHop.com. “A one-bedroom unit now asks for, on average, $3,950. Meanwhile, two-bedroom monthly rents average $5,295, which translates to $2,648 per person. In other words, by having a roommate, renters can save $1,303 per month.”

Alternatively, RentHop points out that “renters in Toledo pay, on average, $630 a month for a one-bedroom apartment, while a two-bedroom unit costs $795. is means that renters looking to save on rent can find a roommate and reduce their monthly housing costs by $233.”

Having savings is a good thing, but the related question is what to do with the money. If the goal is to buy a home, then it becomes important to use housing savings to bulk up cash reserves, assure that monthly bills are paid in time and in full and, if possible, to pay down consumer debt, especially high-cost credit cards.

Email your real estate questions to Mr. Miller at peter@ctwfeatures.com.