Your home is your castle. But what if you have to share it with a bunch of people you don't know? As crazy as it sounds, that's exactly what many San Francisco residents have to do. With sky-high real estate prices, heavy restrictions on new development, and existing homes that are larger than most families can afford, prospective homeowners have come up with a novel way of owning property.
Here's a not-so-uncommon scenario these days: You bought your lovely home, be it a castle, bungalow or yurt, for $200,000 five years ago. Today, it's worth about $300,000. That's a tidy 50% total gain, or 8.5% on a compound annual basis.
These days, many buyers and sellers of homes are tempted. The price of homes has soared over recent years, and people are feeling pinched when they check out what they can buy. Sometimes, they mull over the idea of going it alone.
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