Affordable homeownership through co-ownership

Affordable homeownership — it’s a topic everyone has an opinion about. In this issue, we speak with Noam Dolgin, who weighs in on why he believes co-ownership is an innovative — and more importantly a viable — solution to the housing crunch. And as co-founder of Collaborative Homeownership BC (CoHo BC), he’s helping people of all ages and demographics rediscover the benefits of this time-honoured route to owning their home.

New Home + Condo Guide: In many cultures, co-ownership has a long tradition. What are some of the benefits of this type of purchase?

Noam Dolgin: The two most obvious benefits are the economic advantage and the ability to access different housing types. For example, in many parts of Metro Vancouver, a small, one-bedroom condo is going to cost you at least $600,000. If you got together with two friends or family members, you could purchase a $1.5-million townhouse with two or three times the square footage, a yard, and a garage for $500,000 each.

There’s also another benefit; it’s a huge social value. It’s been well documented that people live longer, happier lives when they don’t feel isolated, but as cities get increasingly dense, people do feel isolated. With co-ownership, you can share meals when you choose to, if there are kids they can play together, and you know there’s someone watching out if you’re away.

NH+CG: Is co-ownership possible if you don’t want to live in the same space with the other co-owners?

ND: Absolutely. In fact, most clients I deal with buy suited units or perhaps a laneway house. Just recently in Victoria, two sisters and a close friend—all in their late 50s—purchased a house with a young woman, a stranger, in her 20s. They each owned a quarter share, and the stranger had the self-contained basement suite to herself while the other three had the rest of the house.

There were also three lots in Horseshoe Bay that had eight cabins on them. Two couples and six other individuals bought the entire property—meaning they each owned a one-eighth share—and they can live there year-round.

NH+CG: Isn’t it risky to purchase a property with someone you don’t know?

ND: I compare the process to marriage. Matching the right house with the right people is like dating. When you’ve found the right match and you’re ready to get engaged, you hire a lawyer to draw up an agreement — like a prenuptial agreement — to lay out each party’s responsibilities. And once that is done, you finally purchase the property. We actually have one woman in our office, Liz, who is our official matchmaker for buyers who are interested in this type of housing.

NH+CG: What happens if one owner wants to sell and move on?

ND: It’s essential to have a legal agreement drawn up as part of the purchase that clearly defines an exit strategy. Usually, it’s structured with three options: the partner who’s remaining can buy out the other; the partner who’s leaving can sell their shares to another party; or the entire property can be sold. I also recommend a lock-out period. This means the property can’t be sold within the first three years.

The agreement also defines what happens if one party doesn’t pay their share of the agreed upon expenses.

NH+CG: Any final thoughts?

ND: This type of homeownership isn’t that different from conventional strata. But, how much better is it when you know, trust, and like your neighbours before you buy? Plus, you can define your policies about how things will be run, rather than dealing with ones that could have been written decades ago.

Noam Dolgin is a realtor with Heller Murch Realty and co-founder of Collaborative Home Ownership BC.