Purchasing a house is a major financial choice that you’ll probably encounter in your life. It’s crucial to grasp all the stages of this process, and co-purchasing with our group is no exception. As your co-sharing associate, we aim to ensure that you comprehend the implications of our joint investment both presently and in the future when you opt to sell. Let’s go through a hypothetical scenario together.


Let’s say we co-share a $1,000,000 home:

In this instance, your mortgage amount will be $800,000, which is 80% of the value of the home. If you provide $80,000, equivalent to 8% of the home’s value, and Hany Adam contributes $120,000 (12%), our combined down payment will be $200,000 (20%).

Considering that you contributed 40% of the overall down payment while Hany Adam contributed 60%, the future appreciation of the home will be divided into a 40:60 equity split.

Let’s fast forward a few years to the point when you decide to sell the home. The selling price of the home is $1,500,000, and during your time of residence, you have managed to pay off $100,000 of the mortgage principal.

When the home is sold, the first priority will be to repay the bank. After settling the outstanding mortgage amount, any payments made by the co-owner towards their mortgage principal will be returned to them from the sale proceeds. It’s important to note that the co-owner will cover the closing costs. Depending on the rate the home has appreciated, the co-owner may be eligible for a selling bonus to help offset a portion of their closing costs.

Once all necessary adjustments have been made, the remaining proceeds will be divided in accordance with our equity split. You will receive the amount you paid toward your mortgage, in addition to the appreciated value of your original down payment. We, on the other hand, will receive the appreciated value of their contribution to the down payment.

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