Vancouver real estate pros say more locals are opting to co-own homes due to skyrocketing prices of properties. Majority of them are trying to pool resources they have just to get into the action of the real estate market.
According to The Province, banks and credit unions like VanCity are trying to promote property co-ownership by giving out "mixer mortgages" that lets families or even unrelated people to buy and own a property together. This concept is not new in Vancouver but the prices of detached homes have jumped to an average of $2.5 million which locals find too high for their salaries to keep up with in terms of mortgage payments. The result is more people are willing to compromise and take a look at these financing setup which figures to rise even more should the prices remain high.
Vancity explained that this new product for mortgage financing was installed in response to growing numbers of inquiry they received from people who want to share their homes to others. Richard Bell, a real estate attorney, says that many of the parties that go into co-ownership involve parents and their children. According to him, last year saw a big jump in number of families making such arrangements and it is likely to continue and increase.
In a report by CTV News, Bell's practice does not only involve him helping his clients understand co-ownership but he himself has been practicing what he's preaching. Together with his wife Reni, they gave 20 percent of their home's ownership to their daughter and her husband as gift. Before they offered this setup, the younger couple was already resigned to the fact that they will be renting their home for a very long time. Now they get the chance to own their house by sharing the property with her parents. Bell said, "Without something like this, they're not going to own a piece of dirt in the city."
