See The Math
As your co-owning partner, we want to make sure you feel comfortable in understanding what our co-investment means today, and down the road when you decide to sell. Let’s walk through an example together.
Try it out using your own numbers. Visit our interactive tools.
Let’s say we co-buy a $1,000,000 home:
In this example, your mortgage will be for $800,000 (80% of the home’s value). If you contribute $80,000 (8% of the home value) and Ourboro contributes $120,000 (12%), together we’ll have a $200,000 (20%) down payment.
Since you contributed 40% of the total down payment, and Ourboro contributed 60%, we would have a 40:60 equity split in the home’s future appreciation.
Now, let’s fast forward a few years to when you decide you’d like to sell the home. The home sells for $1,500,000, and over the time you’ve lived in the home you’ve paid off $100,000 of the mortgage principal.
When the home is sold, the bank will be paid back first. Payments the co-owner made towards their mortgage principal will then be returned to them from the sale proceeds. Please note, closing costs will be the responsibility of the co-owner. Depending on the home’s appreciation rate, they may be eligible for a selling bonus to help cover a portion of their closing costs.
After any final adjustments, we’ll divide the remaining proceeds according to our equity split. You’ll walk away with your mortgage payments plus the appreciated value of your original down payment while Ourboro will receive the appreciated value of our down payment contribution.
Let’s say we co-buy a $1,000,000 home:
In this example, your mortgage will be for $800,000 (80% of the home’s value). If you contribute $80,000 (8% of the home value) and Ourboro contributes $120,000 (12%), together we’ll have a $200,000 (20%) down payment.
Since you contributed 40% of the total down payment, and Ourboro contributed 60%, we would have a 40:60 equity split in the home’s future appreciation.
Now, let’s fast forward a few years to when you decide you’d like to sell the home. The home sells for $1,500,000, and over the time you’ve lived in the home you’ve paid off $100,000 of the mortgage principal.
When the home is sold, the bank will be paid back first. Payments the co-owner made towards their mortgage principal will then be returned to them from the sale proceeds. Please note, closing costs will be the responsibility of the co-owner. Depending on the home’s appreciation rate, they may be eligible for a selling bonus to help cover a portion of their closing costs.
After any final adjustments, we’ll divide the remaining proceeds according to our equity split. You’ll walk away with your mortgage payments plus the appreciated value of your original down payment while Ourboro will receive the appreciated value of our down payment contribution.
