CoHo Success Stories
SELLING PART OF YOUR HOME TO FUND TRAVEL & RETIREMENT
Sellers: David & Judy
Buyers: Melissa & Derek
Previous Relationship: Friends
Sold: 2/3 of a 3 storey home in Victoria, Summer 2020
Seller’s Background:
“Our story of getting on the road to financial freedom started with the decision to purchase a home with a legal suite almost 10 years ago. We definitely wanted a suite so we could have income and reduce our monthly expenses, and because the suite was ground level, we knew if something happened to one of us physically, or if we got sick and couldn’t work, that we would have a fallback position. We could live in the lower suite, rent out the upper suite in the house, and use that income towards expenses if need be.
At that time, we had no idea that selling part of your home was possible, nor was it a thought we discussed. Initially all we wanted was the safety net of owning our own home, having some income to help pay the mortgage and expenses, and a backup plan if life went awry.
The Twist:
“We started going every year to Palm Springs and soon became addicted to the travel lifestyle. We eventually purchased a small motorhome and began going south in the winter and found that renting our furnished home out while we were gone was relatively easy and painless and paid for our Mortgage and expenses while we were away. This new lifestyle caught on with us and we decided that since life is short, that we would make discovering in our Motorhome and heading to warmer climates every winter our new way of life. We created a “winter away lifestyle” and continued to expand our time away every year, and of course a bigger motorhome became a must.
The Plan:
“In 2020, it just dawned on us both simultaneously. We would sell our main home and keep the lower level with the suite. Perfect! We knew an ideal couple, friends of ours, who were cramped into a 550 sq ft 1 bedroom apartment. They had been steadily outgrowing the space since the birth of their son and were so grateful for the opportunity.
The Execution:
“We did up an appraisal to establish value on our home and wrote up a legal agreement together. They are on title and a new mortgage for 2/3rds and with us on as 1/3rd owners. We were able to refinance the home and draw down some equity to fund our travel and have downscaled our work responsibilities. We are currently in Mexico for the winter, working a little, enjoying the weather, studying Spanish, the Mexican people, and the culture, and enjoying a relaxed way of life.
Success!!
“Selling 2/3rds of our home has allowed us the luxury of travel and financial peace of mind, while maintaining a home base and investment in BC. Plus we love to hear Melissa and Derek continuously tell us how happy they are in their new home, neighbourhood, and with our relationship.”
David & Judy Hale, Victoria BC and points beyond!