Many prospective co-purchasers ask themselves “Can this really work?”

Of course, it can!

With good planning, your co-ownership purchase can be a profound and rewarding experience. The next 3 blog posts are case studies from groups who co-purchased their homes. Ttheir stories demonstrate the importance of preparation and following the 5 Steps.

The Four “Golden Girls”

Step 1: The Purchasing Group

Four retired senior women had a common desire: They were all widowed or single, and none of them wanted to live in isolation. Each having some real estate equity, they decided to leverage their equity to live together in a larger property in a quiet town, so that they could age-in-place comfortably and securely.

Step 2: The Financing

Leveraging their combined equity, they worked out a maximum budget of 1.2 million for the purchase price. It was an expensive budget for the community, but they each wanted a large private bedroom and an en-suite bathroom. Equity was split equally 4 ways.

Step 3: The Group Agreement

Each group member contributed $1400 per month for utilities, contingencies and a “common items” fund for items such as wine and paper products. This fund also paid for many maintenance services. This allowed them to live securely even though they were on a fixed income.

Step 4: The Legal Agreement

Among other things, they outlined their terms should a group member leave: They each had the right of first refusal about who bought in. If the replacement process took more than a year, or no agreement could be reached within a year, the house would go on the market.

Step 5: The Property

The members of the purchasing group mutually agreed on what they wanted in a location. As retired seniors, a quality home in a small, vibrant community was more important than access to Toronto, highways, or public transportation. They found a home 50km northeast of Toronto in a small community that allowed them to walk to all their shopping needs.

Without previous ties or past relationships, these four women were able to come together to create their ideal retirement scenario: security and companionship as they aged-in-place. Through careful planning and a structured approach, they successfully secured their co-owned home. They treated their journey as a business agreement but became friends in the process.

What’s in The Ultimate Introduction to Purchasing Co-Owned Real Estate?

1. Introduction to Co-ownership
2. The Benefits of Co-ownership
3. Getting in the Co-ownership Mindset
4. The Five Steps to Co-Owning Real Estate
5. Co-ownership In Action, Case Studies:
   1. The Golden Girls
   2. Multigenerational Magic
   3. The Single Moms Merger