Clubs Across Canada to Buy Houses to Live in for Lower Monthly Costs Than Renting.

This is how

Each club brings together 5-10 people to buy a house to live in. Then thru a membership fee, collectively pay off the financing and house operating costs which includes a fee to build cash reserves for major repairs or replacement of the HVAC system, roof, windows, doors, driveway. and other infrastructure. When the financing is paid in full, membership fees drop to house operating costs divided by the number of members.

Each club uses a Non-Profit Housing Corporation to buy the house and each member has one stock in the corporation. The stock givers the member the right to live in the house at the current membership fee. Using a corporation makes it easy to buy, sell, will or trade a membership. For example stocks allow you to trade your membership for another in a different city for a holiday or permanently. Memberships cannot be rented out to anyone. Members must live in the house as their primary residence.

Financing is done two ways. With a traditional mortgage or using an annuity.

Annuity financing requires lower down payments and higher monthly fees because the amount financed is larger. Annuity financing gives the original homeowner all the interest along with the principal every month for the term of the annuity. It also gives the original homeowner(s) a choice to continue living in the house at very low monthly cost of: House running costs divided by number of members or live elsewhere anywhere in the world and continue the receive the monthly payment.

Traditional mortgages require higher down-payments but have lower monthly membership fees. Banks will finance up to five members with good credit but not the corporation directly. However ten members can be done with some legal creativity using the corporation. This will cost more and potentially mean paying land transfer taxes twice. The end results, monthly membership costs and total costs are still far lower than renting.

Use the Housing Cost Calculator to calculate the numbers for any house.

Data used for calculations: in high cost cities like Toronto, Vancouver, Victoria,

• $1,000,000 house,
• monthly house running costs $2,400,
• 5% Realtor $56,500, tax included
• 1% Realtor $12,373, tax included
• legal fees $3,955, tax included
• land transfer taxes $32,950,
• 0 months of cash reserve,
• 4.65% interest rate,
• 20 year annuity.

Annuity example:  1% Realtor

• members
• 5 down payment $9,855 monthly $1,740
• 6 down payment $8,213 monthly $1,450
• 7 down payment $7,039 monthly $1,243
• 8 down payment $6159 monthly $1,088
• 9 down payment $5,475 monthly $967
• 10 down payment $4,927 monthly $870
• Monthly to original home owner $6,304 for 20 years.

Annuity example: 5% Realtor

• members
• 5 down payment $18,681 monthly $1,684
• 6 down payment $15,567 monthly $1,403
• 7 down payment$13,343 monthly $1,203
• 8 down payment $11,675 monthly $1,052
• 9 down payment $10,378 monthly $935
• 10 down payment $9,340 monthly $842
• Monthly to original home owner $6,022 for 20 years.

 Traditional mortgage example in high cost house cities like Toronto, Vancouver, Victoria,

• members
• using 20% down payment
• 5 down payment $47,381 monthly $1,501
• 6 down payment $39,484 monthly $1,251
• 7 down payment $33,843 monthly $1,072
• 8 down payment $29,613 monthly $938
• 9 down payment $26,32 monthly $834
• 10 down payment $23,690 monthly $750

No costs to join a club to buy a house to live in.

Rickym.com website for clubs to join and Housing Cost Calculator 

• Please share this across Canada so everyone can learn and understand the benefits, advantages and financials of clubs to buy a house to live in. 

• Thank You!