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5 Benefits of Co-Owning Real Estate With Key

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House poor. The term refers to anyone who spends the majority of their income on their housing expenses. With the average housing price in Toronto being 10 times the average Torontonian's income, it’s no wonder that becoming house poor is among the top fears of millennials considering homeownership.At Key, we believe there is a way to deliver the benefits of owning, such as building home equity and security of tenancy, without the need to take on a large mortgage and a massive amount of debt, or sacrificing the freedom typically only available with renting.

Modern problems require innovative solutions. Enter co-ownership. With our innovative solution, we are providing the benefits of owning with the freedoms and renting, so that more Canadians can prosper from real estate. So why choose co-ownership?

Here are 5 benefits of co-owning real estate with Key.

Start owning years sooner

With Key’s model you can start owning for just 2.5% of the value of your suite, which is around 15k for most of our properties. So, instead of spending decades saving up for a 5-20% down payment, you can start owning and building equity many years sooner.

Build home equity that suits you

Like with traditional homeownership, as a co-owner you have an equity position starting from day one that can grow in value over time. You can contribute more to your equity at any time, and the more you own the less you pay monthly. You can see how the financials of our model work with our home equity calculator.Owner-Residents with Key can also benefit from leverage. Key offers an optional Co-financing Benefit, which allows Owner-Residents to build home equity faster. For every $1 you invest, you will also receive $1 in leverage. This benefit is applied up to when your home equity reaches 25% of the value of your suite, at which point it is applied at a lower ratio. Unlike a traditional mortgage, Owner-Residents can benefit from this leverage without having to take on any debt.

No need to worry about a mortgage

Something that’s unique about the Key model is that you can start building home equity without ever being required to take on a mortgage. This is unlike other innovative models, such as rent-to-own models, where you are required to take on a mortgage and put 5-20% down once your lease agreement runs out. With Key, no requirement to qualify for a mortgage allows you more financial flexibility, as well as removes one of the largest barriers to traditional homeownership, especially for those who are self-employed.With Key you can choose to take on a mortgage and purchase the full suite at the end of the third year, but there is no obligation.

Freedom and flexibility

Along with the financial freedom that Key offers from removing the need to take on a mortgage, our model allows for frictionless moving after the first year. Once you are ready to move out of your suite after your first year you simply give us 75 days notice and, based on the value of your suite, you will receive your home equity, appreciation and appreciation from your co-financing benefit back. Key's model also saves the hassles and a minimum of 6% of the costs involved with buying and selling traditional real estate, you can learn more about how closing costs work with Key here.

A budding community

Community means a lot to us, whether it’s the physical community you’re residing in or a community of interest with like minded people. At Key, we are committed to creating a welcoming community, and connecting our Owner-Residents with one another through the events we host.As an Owner-Resident with Key you have the opportunity to take part in a close-knit community while enjoying the benefits of city living in your downtown neighbourhood. You can learn more about how Key enables community here. At Key, we’re on a mission to create a world where real estate is a source of prosperity and freedom for everyone. Our innovative co-ownership solution allows people to get on the property ladder faster and start building home equity from day one. If you’re interested in learning more about our model, learn about how co-ownership models work and visit our FAQ page.

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