You may have watched the UK TV series where the Brits are constantly trying to get on to the Property Ladder. It is very expensive in the United Kingdom to own property, the terminology may not be the same here, but we certainly have the same situation.

Many people are finding it harder and harder to achieve property ownership. Many of you may have rented your property with the intention of saving up for a down payment, years continue to go by, and you are still renting. How much money have you spent on rent while you watch the property prices increase? Every increase in property requires a larger down payment, it’s a vicious circle.

Maybe now is the time to think “outside the box” and consider an alternative method to owning property. Are you aware that you can purchase a property with your trusted, long-term roommate and be listed on Title as “Tenants in Common”? Tenants in Common basically means that each person owns a percentage of the property.

Calculate how much you spend per year on rent with your roommate, how long have you lived together, would it make sense to make an agreement to purchase a property together? The benefit is you will gain equity and not be throwing your hard-earned money towards paying off your landlords' mortgage each month.

When and if your circumstances change and the time comes to part ways, you can sell the property and take advantage of the equity you have built, or you may be in a situation where you can keep the property as rental income.

The big question is, if you have the down payment now, why aren’t you buying a home?

Here’s an example that I confirmed with a professional mortgage broker this morning:

• $500K condo, Strata Fee $350, Taxes $1900
• Minimum down payment (5%) $25K ($12,500 each)
• Mortgage payment $2,079 ($1,039.50 each)
• Strata Fee ($175.00 each), Taxes ($79.16 each)

• Cost per month ($1,293.66 each) 

• The above calculation is based on a Joint Income of $110,000/year, 5year fixed high ratio mortgage 1.95%

If your share of rent is currently $1,000.00/month, you are paying your landlord $60,000 in 5 years

How much can you sell your property for in 5 years? Definitely something to think about ….

As this idea is a little different than the standard approach, it is a good idea to have a discussion with your lawyer or mortgage broker for more detailed information. If you’d like contact names for either, please give me a call.

Let’s get the ball rolling, if you would like properties fitting your criteria sent directly to your inbox, please give me a call or email to discuss your needs & wants. I am always happy to help.