Housing Co-operatives for Canadians offer
far lower living costs over renting.
When interested Join Epheo
so we can find each other and discuss the homes to buy and where.
My name is Richard Hirtle also known as Ricky McMountain and I will be joining one of the co-operatives personally!
Likely in BC.
Canada has serious liveability problems. High costs for food and housing are causing many people financial and health problems. A good solution is
co-operative housing.
What is Co-operative Housing? It is a type of residential housing where the residents own the building collectively. The residents form a non-profit corporation and each resident owns a share in the corporation, which gives them the right to live there. The residents manage the building and make decisions about its operation, such as setting monthly cost and making repairs.
Benefits of Co-operative housing:
- Co-operative housing is far less money than renting or the costs of your own home.
- Plus you build equity in your co-op house.
- You preserve your money: Your monthly payments are lower and build equity in the property rather than being lost as rent.
- Potential for extra appreciation: The value of the house can increase over time, leading to a higher equity stake.
Actual Example:
Windsor Ontario
A $299,900 house for a
5 resident co-op
- Each resident invests $11,746: 1/5th of the down payment, land transfer taxes and legal fees.
- Monthly Costs: The combined monthly cost for each resident is (1/5th of mortgage payment, property taxes, insurance, and utilities) equals $873/month (7 year mortage) or $1,116/month (5 year mortgage).
- When Mortgage Paid: each resident's monthly cost goes down to: $125 a month.
- Equity Build-Up: Each month your equity grows. When mortgage is paid each resident has a minimum equity of $59,980 in the house. This is a significant return whereas you have zero return with rent.
Actual Example:
Belleville, Ontario
a $529,900 house for a
5 resident co-op
- Each resident invests $13,289 1/5th of the down payment, land transfer taxes and legal fees.
- Monthly Costs: The combined monthly cost for each resident is $1,216/month (10 year mortgage), which is 1/5th of mortgage payments, property taxes, insurance, and utilities.
- When Mortgage paid: each resident's monthly cost is reduced to $128 a month.
- Equity Build-Up: Each month your equity grows. At 10 years, each resident has a minimum equity stake of $105,980 in the house. This is a significant return whereas you have zero return with rent.
Another Actual Example:
Windsor Ontario
A $299,900 house for a
5 resident co-op
- Each resident invests $16,334 1/5th of the down payment, land transfer taxes and legal fees.
- Monthly Costs: The combined monthly cost for each resident is 1/5 of mortgage, property taxes, insurance, and utilities: equals $622/month (10 year mortage) or $993/month (5 year mortgage).
- When Mortgage paid: each resident's monthly cost goes down to $125 a month.
- Equity Build-Up: Each month your equity grows. When mortgage is paid each resident has a minimum equity stake of $59,980 in the house. This is a significant return whereas you have zero return with rent.
Actual Example:
Sookie, Vancouver Island
A $799,900 house for a
5 resident co-op
- Each resident invests $35,835 1/5th of the down payment, land transfer taxes and legal fees.
- Monthly Costs: The combined monthly cost for each resident (1/5th of mortgage payments property taxes, insurance, and utilities.) equals $1,553/month (10 year mortgage).
- When Mortgage paid: each resident's monthly cost reduces to $137 a month.
- Equity Build-Up: Each month your equity grows. At 10 years, each resident has a minimum equity stake of $159,980 in the house. This is a significant return whereas you have zero return with rent.
Something for home owners to think about.
Say you own your home outright. The co-operative can offer you an annuity for 5, 7, 10 years with a guaranteed ROI of 6%.
- A $299,900 6% annuity returns $3885 per month for 10 years.
- A $799,900 6% annuity returns $9407 a month for 10 years.
- A $1,000,0000 6% annuity returns $11,065 a month for 10 years
Plus you could stay resident in the house on the same terms as all other residents. You could then travel without worry and have a home base. That only works if the house is large enough for 5 or more residents.
Another big advantage
As your monthly expences are far lower, you can buy better food. By cooking together you can easily eat superior full nutrition meals which have many advantages! According to science a superior diet can help you live longer, keep your skin, teeth, and eyes healthy, support your muscles, boost your immunity, strengthen your bones, help reduce weight and lower your risk of heart disease. It can also help you prevent other diseases, boost your mood, and give you the energy you need to grow and repair your body. Science says that people who eat superior diets rich in vegetables and fruits have a significantly lower risk of obesity, heart disease, stroke, diabetes, and certain types of cancer.
Requirements
To become a resident and member in a co-op house you need a minimum pension of about $2000 per month, and money for the deposit, legal and land transfer tax. Amounts depend on the house purchased. This money is only needed when the house is purchased! You also need to be in reasonable health and capable of looking after yourself. Co-op's are not nursing homes.
When interested
Join Epheo
so we can find each other and discuss the home to buy and where.
My name is Richard Hirtle also known as Ricky McMountain and I will be joining one of the co-operatives personally!