With the tighter mortgage rules and stress tests we have noticed in the last couple years that it's harder for first time buyers to get into the market and out of rentals.
An option may be co-owning. Chances are you will be sharing a rental with someone, why not help each other out by building equity earlier? I have seen this work in more than just a few cases. Another reason for co-owning may be a case where one person has the down payment but less than perfect credit rating makes it hard to buy and another person with great credit but has no down payment.
The real reason I bring up co-owning is to the single people already owning their homes. Why would two, three, or four single people each live alone in a home with the entire costs? Why not have three people living together and then each spend that money from the individual homes into revenue properties? Our society has us thinking that we need to own real estate. While that is a stance I agree with, I don't believe that means that we all have to live in our own homes. As the world gets more populated, the trend will become for more co-habitation. North America just seems to be behind on this theory.
A very important part of any co-own is a good, legal partnership agreement, which a lawyer can draw up.
Next week I'll follow up with financial scenarios.