With home prices rising, many first time home buyers are finding it difficult to buy, and some have even resigned to being tenants indefinitely. Buying a condo or a townhouse is certainly a great option, but what if you prefer a house with a back yard in a nice residential neighbourhood instead, but you simply can’t qualify for the financing? Even condos and town homes are becoming less affordable.
Here is one option that may work for some people – why not buy in partnership with friends or family members? I know this isn’t the preferred method, but did you know that some of those massive office towers are owned by several companies? How about some of those large industrial and residential complexes? If large companies are entering into partnerships for the purpose of buying properties, why don’t families and individuals do the same? Sure, it can be difficult living in the same building with friends or family members, but if you put together a good partnership agreement, this method of buying can certainly work to your advantage.
Let me share with you an example of a property that would work perfectly for two, three, or even four partners – 139 Elizabeth Street South in Brampton (please click the link to view more details and photos).
This property has four separate apartments and it sits on a large 56 X 136 foot lot in one of Brampton’s nicest downtown neighbourhoods. If you were to buy it with one other partner, you can each live in one unit and rent out the other two units, buy it with two other partners and rent out one unit, or buy it with three other partners and each can occupy their own unit. The bottom line is that when the math is done, this will cost each partner almost the same as if you were paying rent. This will allow you to get into the housing market, and you will still be able to save up each month for a down payment on another joint venture or head out on your own.
This is the type of property that you can hold onto indefinitely. Even if you move out because you have bought another home, you can rent your unit and have the tenant pay your share of the mortgage. With the right partners, this can be an amazing way to get into the housing market without sacrificing too much.
If you are tired of paying your landlord’s mortgage, let’s get together for a coffee and talk about how you can make the transition from tenant to home owner/landlord.