With the Boomer generation now in their golden years, and with the rapid growth of real estate values ver the past decades, many retirees find themselves with a lot of equity in their homes and properties, yet accessing that equity can be quite a challenge. While the simplest solution is often to sell and downsize, the appeal of retirement communities or condo buildings is waning with a generation that is living longer and healthier who would rather age in place on their own property. After decades of living in one’s home and community, selling and moving may not be ideal for one’s social connections, mental health and wellbeing. But life and retirement are expensive, prices keep rising and for someone on a fixed pension or with limited liquid savings, looking ahead to surviving over the next 20-40 years can be daunting. Similarly, many in Generation X are now finding themselves separating and thinking they need to sell their family home to afford two homes. Typically, the main option for someone looking to access equity in their property, while continuing to live in their home, is through an expensive reverse mortgage.
Yet a new option, co- ownership, is an emerging trend enabling homeowners the ability to sell a portion of interest in their property to a like-minded collaborator in order to access a large amount of money to fund retirement, pay off debt or a separating spouse, while at the same time lower ongoing costs and responsibilities; all without having to move! So what does co-ownership look like and is it right for you?
Fortunately, co-ownership can take many forms. As every person, property and co-ownership endeavour is unique, the process and template can be adapted to each specific situation. While some folks choose a collective set up with shared living, collective meals, etc., most choose to live more like traditional neighbours in separate living spaces or dwellings. Whether it’s multiple homes on one property, multiple suites in one home or even roommates like The Golden Girls, co-ownership is a great way to lessen financial pressure while lightening the load of property maintenance.
Supporting this growing trend of co- ownership is a team of professionals known as CoHo BC, the Collaborative Home Ownership Initiative, www.cohobc.com, consisting of real estate agents, lawyers, financiers, builders, matchmakers and more; all with experience and expertise in co-ownership.
CoHo BC assists people in co-owning real estate, working alongside their clients, co-creating clear, social, legal and economic frameworks setting the stage for successful collaborations where all parties know how the property is shared, with a clear plan in place for when a partner wants to sell, what to do in worst case scenarios, and much more. Their formula driven approach of resources, checklists, connections and templates, bring an efficientstreamlined approach to this process, helping people across the province sell shares in their properties, as well helping groups of friends, family and even strangers co-purchase properties together. “Selling a 30% interest in my acreage allowed me to unlock significant equity, creating additional financial stability for my retirement years while retaining ownership and connection to my beloved property. I’m so happy with my decision and very grateful to CoHo BC for their expertise in making what seemed almost impossible, a dream come true. I can now enthusiastically begin new projects, travel, age in place, etc., all without the burden of maintaining the property on my own.” Gerda, Errington.
“Selling a 65% share in my property to wonderful new co-owners has allowed me to keep an interest in the land that I love, where I have put so much of my time and energy, and where my wife and I raised our sons.” Mitch, Gabriola Island. Collaborative endeavours are transparent and heart- warming, creating true win- win situations in the name of community and affordability. Whether selling a portion of your property or uniting with a partner to co-purchase, shared ownership has so much to offer. The bottom line, co-ownership can create better housing for less money, allowing retirees, divorcees and others to access their equity and lower the ongoing costs of home ownership without having to move!
Email cohobc@gmail.com to connect with a co-ownership professional in your region to explore whether this increasingly popular housing option is right for you!
Brian Horwitz and Noam Dolgin are real estate agents and co-ownership specialists dedicated to making homeownership more accessible for all.