Vancouver, Canada -- (SBWIRE) -- 04/17/2013 -- There are thousands of Vancouver house for sale every day, and the prices are so high and too hard to afford. If you don't have some property to put it on, how do you go about it?
"The answer is: take some tenants in common." Victor Mars - a seasoned "realty hunter" summarized some tips: "This is known as Shared Equity." He added, "Purchasing a home with your spouse makes you 'joint tenants'. So in case of a mishap with either one, the property goes to the other one. But this is not the only way to title the property."
So if you have any plans to get an affordable home, the next best thing to go with is the shared equity. For example, if there's a home for sale in Vancouver you really like, a three-storied beauty in a great area but costing you a whopping $1,000,000, which is way over, say, your $400,000 budget, the thing to do would be to bring a couple of friends along for a second visit. If they agree with you that it could be a great purchase after a little reworking, half your work is done. Now, the next step would be to decide who prefers which area in the house. It is important that everyone accepts and agrees to live in some or the other part of the house.
You can draw up an agreement at this point after some required math. It will require you to sign a contract with your friends regarding the house.
Next, you can employ a company for a design and get your home ready to be shifted into within several months. It will require additional expenses which you could be divided reasonably by square footage or some other method. But even considering that you spend equally, and spend as much as $150,000 in the design and renovation, and add a few more extra expenses, you will still probably spend only as much as $400,000.
The division of the expenses will totally depend on the agreement you form with your friends. Now, you will have your own shared equity investment or co-ownership. It is imperative that your agreement/contract exists on paper though the details are completely up to you.
The next thing to look for is finance. The service of "Mixer Mortgage" is offered by Vancity. It allows family members, friends or partners to share all the expenses of purchasing a home, both one-time and monthly costs like deposit, mortgage, etc.
Also, Scotiabank, RBC Royal Bank, TD Canada Trust, etc. and similar organizations offer "co-borrower mortgages", allowing people to purchase property together. The interested parties are required to fill a co-ownership agreement and get life and home insurance.
"This is how, co-owning properties helps you buy homes you wouldn't be able to afford otherwise. You can make arrangements and get it painted as you like with no worries of facing objection and eviction." Mars explained.
Additionally, you should know that being tenants in common implies that in case of any mishap (like death) with one owner, the portion of property owned by him goes to his estate, as the contract would usually dictate, and not to the fellow tenants. You can use the contract to protect yourself in various situations: and you must do them before you make your purchase.
For more information about Vancouver Housing, or know more regarding buying or selling house, apartment or condo in Vancouver, please visit http://www.house-vancouver.com/