In our fast paced society one of the more popular homes is the extended family home. It is popular for several reasons here are a few of them.
Cost of Buying a Home
Recently the mortgage rates have gone up which means new buyers can afford less home. This along with the recent stress test for carry a mortgage which was implemented last year has really stopped buyers in their tracks. How to overcome this well here is what some young couples do.
Married couples, friends, or like minded people are getting together and purchasing a single home together. It can be a single family home with lots of separate living areas or a home which has an actual separate entrance to an apartment. What ever the type these people are co-owners. This is a clever idea but definitely needs ground rules set in place before entering into a signed contract.
Things like amount of maintenance costs, who is responsible for what chores, what to do if someone dies or wants to leave the house, must all be discussed and written down in a contract so to speak so all parties are clear as to what is expected of them. Easily said but perhaps much harder to implement.
Need for Care giving
All families at sometime will need a relative to help them or who needs help. It is difficult to do this from a distance. Many families like a duplex for this reason. They remain close but are there for elderly care or have relatives there for babysitting. This is the way many families lived in years gone by and now it has come back around as a desired way of living. It benefits both the health of the caregiver and recipient.
Desire for a Cottage
The price of cottages has escalated in the last few years but the desire to own has not. Many friends and families co-own cottages. This takes the pressure of ownership off the shoulders of one family. The cost of borrowing for a cottage can be higher as you need a larger down payment. The time and cost of maintaining boats, docks, and the actual cottage is both costly and time consuming. If several families take a portion of both, then there is perhaps more time to actually enjoy the cottage.