Soaring real estate prices and higher interest rates have sent a chill through the next generation of up and coming home buyers.
And are leaving the rest of us asking questions like, “will our children be forced into co-owning a home with their friends?”
What seemed much more attainable before, now is a pipe dream for many looking to enter the market. Jokes about kids never being able to afford to leave home now feel like they contain an element of truth.
But all joking aside, that’s a sub-optimal solution for both the parents and the kids.
In some cases, parents will be able to help their kids into their first home. Unfortunately, in many cases, this is not a feasible option. Most will have to find a way forward on their own, without help. One idea that has been floating around is the idea of friends co-owning a home together.
At first look, this sounds like a recipe for disaster… and for good reason.
But, if we look at it another way, large investors and developers often co-own properties together. So, why can’t friends do the same?
The answer is that they could.
But they would need to take some extra considerations into account prior to making this kind of co-ownership commitment. You see, institutional investors and developers enter into these deals after seeking legal advice regarding their potential outcomes.
If young people sought out legal advice regarding the structure of ownership and the implication of such a mortgage, these types of co-ownership deals could be possible.
With the uncharted territory that is the reality of our current housing market, creative solutions need to be considered. These new solutions simply require new considerations to be examined. The experts at Kokanee Mortgage are always at the ready to help offer insight and experience to all your lending needs.