It’s no secret; buying a home in Toronto can be really expensive right now, and it doesn’t seem to be getting any cheaper, but if you’re a young, first-time homebuyer, that doesn’t mean that homeownership should be, or is, out of the question for you.
Have you considered co-ownership? Buying a home with friends or family is a fantastic way to go about purchasing a home. Co-owning a home isn’t a new concept; people have always been able to do it, but because of higher real estate prices, it’s becoming a more popular solution for people. If you’ve never considered it before, here are a few reasons why you should:
Life Will Be Less Expensive
You’ll be splitting everything between the number of people you own the home with. So that means cheaper monthly costs for utilities, cable, property taxes, and of course, mortgage payments. If an unexpected repair comes up, or if you decide to take on a home renovation project, you’ll be saving money there too. If you’re a little creative, there are other ways you can save money as well. For example, maybe you’re buying with someone that can help you out with babysitting or shared meal expenses.
A Bigger Home, In a Better Neighbourhood
Want to buy a home in Trinity Bellwoods, Queen West, or even Kensington Market? Want to buy one of those newly built, ultra modern homes in an up-and-coming area? Didn’t think it would be possible for you to afford it anymore? By purchasing a home with more people, you’ll probably be able to put down a bigger downpayment and afford a larger mortgage payment each month. That means, a home that you didn’t think you could buy is suddenly back within reach!
It Only Needs to be Temporary
Just because you buy a home with your best friend, cousin, or even your parents, it doesn’t mean you have to live with them in this situation forever. Co-owning is a fantastic way to get into the real estate market as a first time homebuyer. If you make a smart investment when you buy the home, it could be worth a lot more in a few years. If you plan to sell at that time, then you can cash in on the equity you’ve built, split it with everyone involved, and use that as a downpayment for a home that you own on your own.
Is Co-Ownership For You?
Buying a home with other people isn’t for everyone. There are certainly a few risks when it comes to co-owning a home, and you’ll want to be very selective about who you purchase with. But if you can handle it, it’s a smart way to get into the real estate market.