They say two heads are better than one, and when it comes to buying property, two buyers can be better than one, too.
With real estate prices soaring, especially in major Canadian cities, many single buyers struggle to enter the market on their own. That’s why co-buying is becoming an increasingly popular solution. Pooling resources with friends, family, or carefully chosen partners can provide access to better properties and help buyers build equity sooner.
Teaming up to buy a home can open doors that might otherwise be out of reach. Whether it’s purchasing a detached home, investing in a multi-unit rental, or securing a long-term family property, sharing costs allows buyers to explore more options and increases potential returns. For parents, co-buying a home for a university student can be a smart alternative to renting. It provides a stable place to live while also helping young adults develop financial responsibility and build equity early on. Even after graduation, keeping the property within the family can be a great way to maintain a foothold in the market.
While co-buying with family members often makes financial sense, some buyers also explore partnerships with friends or even well-vetted strangers. Like any business arrangement, it’s important to separate personal relationships from the investment itself. Setting clear expectations from the start can help avoid complications down the road.
Co-buyers should also carefully consider how ownership will be structured. In some cases, each person may hold a specific percentage of the property that can be sold separately, while others may choose a structure where ownership automatically transfers to the surviving partner if one passes away. While unexpected events like illness or death are rare, changes in life circumstances—such as new jobs, relationships, or disagreements—are much more common. That’s why it’s essential to have a clear plan in place for what happens if one person wants to sell or can no longer afford their share.
To avoid misunderstandings, co-buyers should discuss key financial and logistical details in advance. This includes how mortgage payments, taxes, and utilities will be divided, who is responsible for maintenance and repairs, and how decisions will be made if unexpected costs arise. Establishing a clear buyout process can also prevent complications if one person needs to exit the agreement.
As always, I recommend speaking with both your real estate agent and your lawyer. They can help draft a solid agreement that addresses potential challenges and outlines how the property will be handled when it’s time to sell. Since most purchases aren’t forever, it’s important to have a clear plan for dividing proceeds—or losses—when the time comes, whether you’re co-buying with a partner, family member, or friend.
Gone are the days when homeownership was only for individuals or traditional families. In today’s market, co-buying is a practical way to secure a home that suits your needs, whether that means more space, a better location, or a stronger investment opportunity. Even a modest contribution from a co-buyer can be the difference between settling for a home you like and securing one you truly love.
If you’re considering co-buying, let’s talk about how it could work for you.
