Hello everyone,
just purchase a property in GTA with two of my daughter's friend as a partner. wondering what do you suggest on % of ownership and what will be fair for everyone. There are 4 of us on title( my wife and i $200K, my daughter's girl friend $40k, another their friend $300K).
This is a 3 story home without a basement. one person will live on the main floor and we will build a kitchen for him and he will occupy the entire main floor that attach with the garage and a walk out back yard and a bath room. My daughter and her friend will live on the third floor ( there are 3 bedrooms). and use the second floor 's kitchen, living room. They might bring in another friend to offset some of the mortgage payment as well. They all agree to pay the same payment towards the mortgage payment and share all other living expense.
I wonder if this is fair for everyone by calculate it by portion.
total cash on hand to purchase $300K+$200K+$40K = $540K
$300K : 30/54x 100= 55.56%
$200K : 20/54x 100= 37.04%
$40K: 4/54x100= 7.41%
I usually want to own 100% of a property ( okay, my wife own it 99% and 1% for me)
however, Toronto is so competitive at this market and we have to find a money partner to purchase. This will be my daughter's principle living place for a long time. my daughter doesn't want to be on title and i will put her name on my will for our share on this house. Therefore, this house is not consider as an investment property for me. it is a nice living place for my daughter. she might have to buy out her friends share in the future. I just need to set it right at the beginning and to be fair for every partner.
any words of wisdom are much appreciated.
Chio
just purchase a property in GTA with two of my daughter's friend as a partner. wondering what do you suggest on % of ownership and what will be fair for everyone. There are 4 of us on title( my wife and i $200K, my daughter's girl friend $40k, another their friend $300K).
This is a 3 story home without a basement. one person will live on the main floor and we will build a kitchen for him and he will occupy the entire main floor that attach with the garage and a walk out back yard and a bath room. My daughter and her friend will live on the third floor ( there are 3 bedrooms). and use the second floor 's kitchen, living room. They might bring in another friend to offset some of the mortgage payment as well. They all agree to pay the same payment towards the mortgage payment and share all other living expense.
I wonder if this is fair for everyone by calculate it by portion.
total cash on hand to purchase $300K+$200K+$40K = $540K
$300K : 30/54x 100= 55.56%
$200K : 20/54x 100= 37.04%
$40K: 4/54x100= 7.41%
I usually want to own 100% of a property ( okay, my wife own it 99% and 1% for me)
however, Toronto is so competitive at this market and we have to find a money partner to purchase. This will be my daughter's principle living place for a long time. my daughter doesn't want to be on title and i will put her name on my will for our share on this house. Therefore, this house is not consider as an investment property for me. it is a nice living place for my daughter. she might have to buy out her friends share in the future. I just need to set it right at the beginning and to be fair for every partner.
any words of wisdom are much appreciated.
Chio