Realtor Noam Dolgin is well aware just how difficult it is to get into the housing market these days.
Which is why he helped co-found CoHo BC, a company dedicated to collaborative home ownership.
He says between housing prices, large down payments, the number of qualifications needed, and the rules around the stress test, it’s tough for anyone to afford a home, but in particular the self-employed, young people just starting out and retirees. (The Canadian mortgage stress test ensures borrowers can afford their mortgage payments even if interest rates rise, by qualifying them at a higher rate.)
“So yeah, getting into the market is getting harder and harder all the time and this is a workaround. It's not a new concept,” said Dolgin. “People have been buying property with friends and family for generations and there was a big move of friends buying together in the '70s, and co-ops being formed. But it's clear this is becoming a much larger part of the market in general.”
CoHo BC acts as kind of a matchmaker for individuals, couples and families who want to purchase a home, but just can’t get into the market. An example, Dolgin says, is two first-time buyers with well-paying jobs and who can qualify for a mortgage, but they just can’t afford the down payment needed.
“Neither of them really could buy a property on their own, but together they can actually qualify,” he says.
With that kind of co-ownership in mind, Dolgin is hosting the Sunshine Coast Shareable Property Tour & Coffee Mixer this weekend, to allow potential homeowners to meet each other and then visit several properties between Gibsons and Sechelt that include more than one unit.
He notes, ideal properties typically include side-by side-duplexes, homes with a garden suite, and properties with multiple houses. The mixer prior to the tour is an opportunity to meet like-minded, potential homeowners to see if they click.
“The tour is to see if people can see themselves in these situations and also a chance for them to meet other potential co-buyers,” said Dolgin. “Some folks who do co-ownership are buying with friends, some folks buy with family, and some folks don't have anyone to buy with and they're interested in meeting and connecting with strangers to see about building a community to buy together with. So, the event serves all those purposes and offers a sense of the market and also a chance to meet other potential partners.”
Dolgin said it’s important that co-owners share some commonalities, kids being one example, and that they find someone they can trust to pay their share of the bills. Co-owners might agree to becoming friendly and even sharing meals together, while others just want to live their lives separately, but on the same property. He added, differences between the co-owners sometimes also help. For example, while one owner might be super handy around the property, the other might not be, but has a background or appreciation for finance and can take on the responsibilities surrounding that.
“But you want to have someone who is a good communicator and is friendly and has shared values,” says Dolgin.
If things don’t work out or situations change, he says there is an option for one of the co-owners to sell their shares with the remaining owner given first right of refusal to buy them out.
He adds there are several reasons people consider co-ownership with the first, of course, affordability. Someone who qualifies for a $500,000 mortgage may get into a condo, but combined with another owner – or even two – they now have access to acreage with a smaller mortgage.
Another reason to consider co-ownership, he says, is more people are feeling isolated. Dolgin notes it’s ironic that the denser an area becomes, the more sense of isolation many people feel.
“COVID really highlighted this, but it's a problem that's been going on in society for a long time,” said Dolgin. “So, this allows you to know your neighbours, to buy in with people with intentionality and build a community around your housing. Certainly, there are also environmental advantages to this with lower footprint living.”
The Sunshine Coast Shareable Property Tour & Coffee Mixer takes place this Saturday, April 5, from 1:30 to 4:30 p.m. You can reserve a spot on Event Brite.
