'It still doesn't feel real': How this 24-year-old bought a $750,000 house with her brother

The Millennial Money series by CNBC Make It showcases how individuals worldwide manage their finances, including their income, expenditures, and savings.

Post-grad life looks a lot different than 24-year-old Sharon Kim previously pictured.

She opted to shift her career path from fashion to UX design in the tech industry, and instead of living in an apartment in Manhattan with roommates, she purchased a $750,000 home in the suburbs of New York City with her oldest brother and his wife.

""I never imagined that I would be living with my brother, his wife, and purchasing a home post-college due to the student loans I had and the uncertainty of my career path," she tells CNBC Make It."

Kim and her brother had a strained relationship growing up due to a seven-year age gap. Despite this, he still wanted to take care of his younger sister even as he approached his thirties. After Kim graduated from Parsons School of Design in May 2023, he invited her to move into the Queens apartment he shared with his wife as a way to save money.

It took some getting used to.

Kim was thankful to stay on his brother's couch, but the trio would argue over household chores, such as vacuuming and cleaning the kitchen after dinner, she says. Additionally, since her brother and his wife converted their den into a makeshift bedroom for Kim, they didn't have much space to move around in the small, 700-square-foot apartment.

She claims it was intended for a small group of individuals," he states. "It felt quite confined.

Despite improving their communication and establishing a chore schedule that suited all, they recognized that it was not feasible for the three of them to reside in the one-bedroom apartment for an extended duration.

They started investigating the types of homes they could afford with their combined finances since owning a home was a mutual, long-term objective.

In 2022, Kim earned approximately $111,000 from her YouTube channel, which focuses on lifestyle content, including tips on getting into Parsons and transitioning to a career in tech. Additionally, she landed a job in UX design in 2023, which pays around $94,000 annually, providing a more stable source of income.

After nearly a year of searching, they finally found their dream home - a three-bedroom, two-bathroom fixer-upper with a finished basement in the suburbs of New York City. Kim requested that the name of the town be kept private for security reasons.

Despite our differences, Kim says, "knowing that at the end of the day, family is family, and making a conscious effort to put aside our differences to work together has been the best outcome for us."

Challenges of searching for a dream home

Although their homebuying journey ended happily, the search started off rocky.

Kim, her brother, and his wife initially believed they would secure a home within their ideal price range with a 3.5% down payment, and they were not particular about the location, seeking "any place that wasn't more than an hour outside of Manhattan."

Kim says that they faced stiff competition from other eager homebuyers during their search for a new home.

She says they realized that a 3.5% down payment wouldn't be enough to compete with other buyers who made all-cash offers or outbid them on the homes they were considering.

To make their bids more compelling, the trio decided to increase their down payment offer by 10%, which amounted to approximately $77,000. Kim contributed about one-third of the total amount.

"We expected things to be more expensive than we anticipated, but we didn't realize how much more we'd have to pay," she says. "I definitely felt a lot more stressed."

The increased down payment gave them the leverage they needed.

After months of viewing over 200 dwellings online and attending 20 open houses, they finally found the one that met their needs. The home offers ample space, natural light, and an open floor plan. However, what truly sold them was the safety of the neighborhood, according to Kim.

Three months after purchasing the property for approximately $750,000, Kim and her family closed on the deal with a 30-year fixed-rate mortgage and an interest rate of around 6.9%. Kim owns 30% of the property, while her brother and sister-in-law own the remaining 70%. Since they put down less than 20% as a down payment, they will need to pay for private mortgage insurance as part of their monthly mortgage payments.

""It still doesn't feel real to me," she says."

Transforming a house into a home

Renovations on the nearly 70-year-old home were the next step for Kim and her brother after establishing ownership.

"We opted against purchasing fully renovated homes because some renovations may not align with our preferences," she explains. "Instead, we prefer to select and customize everything ourselves, doing the work ourselves."

They swiftly undertook renovations on their apartment, installing new flooring, adding decorative crown molding, and replacing kitchen appliances such as the sink and refrigerator before their lease expired in two months.

"We would spend our weekends at the house from 7 a.m. to 9 p.m.," Kim recalls. "As a team of three, my brother, sister-in-law, and I completed about 80% of the renovations on our own."

They relied on YouTube tutorials for simpler tasks but enlisted contractors for complex projects, such as kitchen countertop installation.

Kim has spent approximately $40,000 on renovations so far. To cover her portion of the costs, which amounted to around $7,755, she opened a credit card with a 0% introductory annual percentage rate for 12 months.

Although we would gain some benefits from taking on a small amount of credit card debt temporarily, she believes it was still a worthwhile decision.

Kim is striving to pay off the remaining balance of approximately $6,995 on her card by reducing her dining out and clothing purchases, she states.

How Kim manages her money

Kim's monthly mortgage contribution of $2,500 is in proportion to her 30% ownership stake in the property.

To maintain simplicity, we divide everything equally among three people, as Kim explains.

Here's how Kim spent her money in July 2024.

• Her portion of the mortgage, water, oil, electricity, and Wi-Fi amount to $2,876 for housing and utilities.
• The cost of new bedding, bedroom fixtures, and a tithe to her church is $636.
• Home upgrades: $533 for paint, baseboards and a new showerhead
• Food: $404 on groceries and dining out
• Student loan repayment: $285
• Retirement savings: $216
• Her gym membership, Spotify, Amazon Prime, and Apple Cloud storage cost $116 per month.
• Phone: $64
• Insurance: $41 for medical, dental and vision

Kim also has nearly $600 in a high-yield savings account.

She admits that she could manage living with a roommate in Manhattan or Queens for the same cost as her mortgage payment, but she prefers the idea of owning a home and feels it's more valuable.

Kim says that living in the suburbs has made it more challenging for her to adjust her social life, as she is further away from her friends in New York City and New Jersey.

She prefers to spend more on special occasions like her birthday dinner, which cost her $100 this year, she reveals.

"I spent the whole night with my closest friends at an Italian restaurant in New York City, and we then went to a few other bars," she says. "It was definitely worth the money to spend the night with the people I love and care about."

Plans for the future

Kim plans to buy another house with her brother when he returns from abroad, she reveals.

She plans to continue renovating and upgrading her current home with her oldest brother and his wife, with the goal of eventually giving it to their parents when they retire.

"Kim says that they want to gift the house to their parents, who gave up a lot to move from South Korea to here, as a thank you."

She is content with residing with her family, despite the occasional disagreements over household tasks, although she understands that she will eventually relocate.

""While many people my age may prefer a studio apartment or independence, I enjoy living with others. I appreciate having someone to share the living space with, and I'm fortunate to be living with family and trusted individuals," she remarks."

Kim advises not to fear taking an unconventional approach for those aspiring to own a home one day.

"I can't say I've done this alone, but I believe it's possible to achieve what you can within your capabilities," she remarks. "If you have the ability to collaborate with your family, I think it's definitely a viable option to explore."

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