Hot real estate markets can be hard, no matter which stage of the process you’re in.
Buyers will compete against each other, and they are tempted to spend more than they really want to.
If you’re struggling with the cost and commitment of finding the right home, take the time to rethink what owning a home means to you. There could be alternative options you haven’t fully considered.
Shared Ownership Arrangement
If you have a close friend or family member who also would like half of a big mortgage, consider shopping for a home together!
Look for properties that feature functional floor plans so that you can carve out some separate living areas to give each of you some privacy.
Remember to factor in the cost of renovations so that boundaries are clear, and expectations need to be talked about ahead of time and each party will need legal advice.
Multi-generational living can be very common in some cultures, but unheard of in others. It’s a way for family members to help the next generation of their family enter the real estate market. It’s an idea worth exploring, but it’s not for everyone.
Before looking into the multi-generational living option, consider if your parents or family members are available to invest in a home with you. If they are, look into formalizing any agreement with this investment, as it would ensure everyone is protected in the purchase.
Rent Out a Portion of Your Home
If you are looking at homes to buy that have spare bedrooms, but not a separate suite, you could rent the rooms while you save up to do renovations for a suite. However, if you don’t feel comfortable with others living in your property, consult your local bylaws to see if there are other opportunities for permitted rental.
If you choose to become a new landlord, consider contracting with a professional service to help screen prospective tenants or check for landlord resources and associations in your province. Make sure to familiarize yourself with any regulations along with your responsibilities.