With rising interest rates and property values, combined with elevated cost of living, the pursuit of home ownership is getting further out of reach for many people.
One creative way to get into the market and lower the cost, is to pool your finances and consider co-owning a property. A recent study found that 6% of Canadian homeowners co-own with another party who isn't their spouse or significant other.
So you have a really great roommate and you both don't want to pay someone else's mortgage for the next 10 years.
Maybe one of you has enough saved for a 5% down payment on a suitable property, and the other person qualifies for the first time buyers' program. Together, you make a really good candidate for a Mortgage.
But it is not the conventional way to buy your first home... perhaps you are worried about committing, or it's not how you pictured your life direction going. Whatever may be holding you back from taking the leap, the fact is, thatThere are multiple ways to structure a partnership in owning real property, depending on what each party brings to the table. This can be as joint tenants (both on title) or having one party on title and one as a Beneficial Owner, which is then legally outlined in a Bare Trust Agreement.
When it comes time to part ways, there are creative ways to go about dissolving the partnership so that everyone is satisfied as well as clear rules to protect both parties, no matter how the partnership is structured.
The decision to buy jointly with family or friends requires careful thought and consideration, as well as the establishment of notarized agreements. This could very well become the "new way", as societal norms shift and we adapt to the barriers stopping us from realizing our goals and dreams.
One creative way to get into the market and lower the cost, is to pool your finances and consider co-owning a property. A recent study found that 6% of Canadian homeowners co-own with another party who isn't their spouse or significant other.
Is it right for you?
Maybe one of you has enough saved for a 5% down payment on a suitable property, and the other person qualifies for the first time buyers' program. Together, you make a really good candidate for a Mortgage.
But it is not the conventional way to buy your first home... perhaps you are worried about committing, or it's not how you pictured your life direction going. Whatever may be holding you back from taking the leap, the fact is, that
the right time to buy real estate was yesterday.
When it comes time to part ways, there are creative ways to go about dissolving the partnership so that everyone is satisfied as well as clear rules to protect both parties, no matter how the partnership is structured.
The decision to buy jointly with family or friends requires careful thought and consideration, as well as the establishment of notarized agreements. This could very well become the "new way", as societal norms shift and we adapt to the barriers stopping us from realizing our goals and dreams.
