Roommates aren’t for everyone. Many people probably have experiences with roommates of a time past – during university, or the first few years afterwards. We often associate roommates with these earlier stages of life. But trends suggest that roommates could be a part of living situations for later than in the past.
Co-ownership of real estate is where a mortgage is split between roommates. It can take many forms. in some situations, one of the co-owners may choose to live elsewhere and take part in the mortgage as part of their investment strategy. In other situations, co-ownership could be between two young couples looking to get in the housing market, or between parents and a maturing child that wants to finally move out of the basement.
So why do people choose co-ownership? Affordability is the main reason.
These days, mortgages for the same house can be separate. This allows one co-owner to sell without financially penalizing the other co-owner. Mortgage providers are catching on to this emerging trend and offering tailored co-ownership offerings.
Co-ownership mortgage structures aren’t for everyone. Compromises have to be made. Co-owners need to be flexible in order to respond to life’s changes. Difficult conversations need to be made in the planning stages.
But there are significant pay-offs for those that can find the right co-owner. Shared living spaces can be beneficial to many different types of living situations. Ultimately, co-ownership will likely increase in popularity as long as affordability continues to constrain buyers from living in the home they want.