Born of the recession in the United States, group home buying is starting to catch on in Canada, reports the Calgary Sun.
A recent TD survey found 25% of Canadians who bought a home in the last 24 months, or are planning to in the near future, did so on their own, while 40% think buying property, whether a primary residence or vacation home, with friends or family members is a great way to get started.
This shift towards non-traditional ways of purchasing property requires careful planning to avoid potential bumps on the road.
Whether buying alone or with someone else, the first step is to decide how much you are comfortable spending, and what the down payment will be.
Buyers pooling resources may be able to make a larger down payment on their purchase and there are benefits to this. For example, homebuyers who put down 20% or more may avoid paying for mortgage default insurance.
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