Ever considered purchasing a residential or investment property with family or friends? Well, you’re not alone, lots of folks are doing it in the U.S and Canada.
What is home co-ownership? Also known as a tenancy in common (TIC), allows for the fractional ownership of a residential or investment property. In other words, each tenant in common owns a percentage of the value of the entire property. Strangers, friends, and family can jointly co-own a residential or investment property. Most importantly, aside from being an established form of homeownership, many mortgage lenders now actively support TICs by offering fractional mortgages. What this means is a peace of mind regarding financial liability.
Additionally, co-ownership allows you to share the down payment on a home, the monthly mortgage payments, and ongoing costs associated with homeownership.
Say hello to homeownership and goodbye to being house rich and cash poor!