People are now co-purchasing homes to afford Toronto's overblown housing market
Now that sharing bedrooms (and perhaps even beds) in Toronto’s overpriced rental market is no longer out of the ordinary, it’s no wonder that progressively more people are going in on home purchases together.
The GTA real estate landscape may be far cooler in recent months than it’s usually known to be, but even high interest rates and a precipitous decline in sales can’t make housing prices budge. So, those still intent on getting into the market are somehow being pushed to find alternatives to traditional homeownership.
For some, this looks like moving out of the region, province, or country entirely. For others, it could mean moving to a remote, off-grid community in Ontario’s north. But for those who want to stay in (or near) Toronto, who don’t want to rent forever and who don’t have the financial support of family, co-ownership is an option that is catching on.
Experts revise Toronto housing forecast due to tanking market but say prices are still going up 😳https://t.co/SCjMK3oLqX #Toronto #TorontoHousingMarket
— blogTO (@blogTO) October 12, 2023
According to a new report on the growing movement from Zoocasa, homeownership rates for young people have been falling for some years now for obvious affordability reasons, but while 67% of millennials who responded to a survey say they’ve put off buying a home, 65.9% said they are still planning to buy “in the near future.”
“The dream of homeownership is still alive, but the process of getting there might be changing,” the firm’s team writes.
“If you aren’t able to buy your dream home right now, it might be a two- or three-step plan to get to that ultimate home. Clients are choosing co-ownership because they either can’t get into the market or they can’t get into the market where they want to live, especially in the GTA.”
With co-ownership, loved ones or even strangers can pool funds to secure a home, which they can divide up into separate units, live in together, or rent out.
It’s a way to start your homeownership journey earlier, build equity, and afford something more than you’d be able to alone, experts say.
Of course, stakeholders whose livelihood depends on a booming market (and for whom the continued overvaluation of that market is beneficial) have reason to encourage this path.
People are buying property with friends and family to afford a home in Canada https://t.co/bebfUGGz6e #Canada #RealEstate
— blogTO (@blogTO) September 2, 2023
While some may consider the co-ownership trend a sad indication of how unjustly extortionate living in the Toronto area is right now, it can indeed be a very savvy fiscal decision and perhaps the only way to achieve a long-time dream, so long as you don’t forget the adage that friends and money don’t mix.
Agents suggest treating the situation like a business partnership and selecting someone with the same goals as you, including the length of time you hope to co-own.
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