New Trend Makes Housing Affordable
Wednesday Apr 24th, 2019Share
New Trend In Affordable Housing
April 24th, 2019 Today I had the most amazing chance encounter in which we ended up discussing in depth the concept of co-ownership. The more we talked, the more I was blown away by the possibilities. So let me start at the beginning so that things make sense. In todays economy, it is scary for many, that the price of affordable housing is making it harder to find a good place to live. First time buyers are often looking at entry level prices of $750,000 and higher and then on the other end of the spectrum are the seniors who are being pushed out of their homes by a tax system that puts an unfair value on their home based on what has sold down the street for outrageous prices.
What is co-housing and what are the advantages?
The concept is fairly simple. It is when two or more people purchase a property together. Documents are prepared properly by a lawyer who set the rules of the ownership while simultaneously protecting all parties. As a result, the owners usually save by sharing many of the expenses such as utility rentals, internet, phone, alarm system contracts just to name a few. When it comes to acquisition price, the purchase is divided by equal ( or unequal ) amounts (depending on the situation). Since there are multiple people on title, mortgages are often easier to obtain. When I discussed with a mortgage agent, I was told that many financial institutions are open to the concept and will provide financing.
Who is ideal for co-housing?
As my meeting unfolded, the number of ideas grew exponentially. This is where it comes back to concept that a home is more than just four walls. There are benefits that exceed having just a place to lay your head at night. Here are just a few to get you thinking.
I have a dog and cat who I love very much and every time my wife mentions vacation, the first thing that comes to mind is who will take care of them? If we had a co-owner who loved animals, we would share in much of the work involved. When they would go on vacation we would look after their pets if we each had our own or have other mutually beneficial trade-offs.
Another benefit can be a trade-off between loneliness and contribution to others. An example, you may be an elderly person who has nothing to do all day and you may want to cosider living with a younger person who loves to come home to a clean home and cooked meals. In this relationship the younger person may do all the heavy yard work and snow removal. What ever the case, there is synergy from the relationship.
I thought about single parents. In todays society, where many get divorced, single moms and dads have no where to turn. Going out once a month is almost impossible when the kids are young and leaving work is really scary every time little Jimmy gets in trouble. With several single parents sharing the well being of the pod, parents can regain the sense of freedom they once had. It is very empowering.
I also like the idea of students (or their parents) owning a property with other students. It creates affordable housing in a hopefully clean and cared for property and as the student graduates, his share of the home can be purchased by the existing owners or sold to another student.
By now you are getting the idea. Regardless of whether you travel 6 months of the year and just need a place to come home to or want to be surrounded by friends as you get older the concept makes sense.
As a realtor, I help people to make their house a home. This idea is very practical from an economic and social perspective, if you want to buy me a coffee, call me at 905-452-2186. I can help!