https://unclebobexplains.wordpress.com/2021/11/16/last-time-sellers-solve-the-housing-shortage-crisis/
Last Time Sellers solve the HOUSING SHORTAGE CRISIS
I read another Realty Market report today that lamented the lack of inventory in resale housing
(many other commentators) lament the lack of inventory in NEW construction
Let’s think about RESALES for now
ScotiaBank’s Monthly report Cdn Home Sales – October 2021 noted that “…the increase in listings was also broad-based but lagging sales in magnitude,”
and I wrote them back saying “BECAUSE the listing inventory is being held off-market by Last Time Sellers”
IF Grandma/pa perceive their home is worth 1-2% MORE each month …. (and if they are aware of the existence of HELOCs or Reverse Mortgages)THEN they won’t put their home up for sale until the very last minute
They are “Last Time Sellers” the vital, equal-but-opposite market segment that provides the inventory for First time Buyers
One day soon, some bright spark Realtor/Broker/Lender will announce a Joint-Venture transaction type that symbiotically solves/resolves the Home Inventory/ Housing Unit creation “problem” that is lamented all over the news.
Last time Sellers (not all, not every) will offer a Percentage Interest in their home to a (not all, not every) First Time buyer wherein they both will own the property together – jointly.
With terms and conditions for time and termination and buy-outs and everything else – just like any Partnership agreement does.
First-timers will participate as a residence while Last-timer will get some of their money in cash (10%-50%) and participate for value of the rest of their equity as an investment -in an appreciating tangible asset.
Jointly /proportionately paying for taxes, repairs and contributing to a reserve fund for just-in-case 30 yr things (as do Condo Corps)
First Timers will occupy, pay a down payment and secure a 1st mortgage (paid to the Last-timer) and the Last-timer will hold a no-interest Second (a la an Equity Participation loan – good guide for the paperwork too)
TRREB already permits Listings of Less-than-100% interest in property, so there is no reason to wait.
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