How to afford Arizona vacation real estate

Well it seems like most of Alberta has jumped on the vacation home band wagon and bought something down in Arizona.  Just about everyone you talk to has bought, is looking to buy or would love to find something down south to get away from the inevitable cold weather we will be suffering in the Canadian prairies in approximately 5 to 6 months (yes the summer in Canada is way too short).

Unfortunately not everyone has the financial ability to put down $200,000 in cash or take out a large mortgage to leverage the buying opportunities that abound in Arizona, and specifically metro Phoenix.

But wait, there is a way the average Canadian can buy a vacation home in the warmer climates and not go broke doing so. Though joint ownership it is possible to purchase a great place down south for no more than the price of a new car.

If you get 3 to 5 families together (2 would even work) and work through the proper processes and requirements (identifying needs, wants, desires and must haves) the capital costs of a vacation home along with the monthly operating expenses can be split evenly between the joint owners.

As an example, 5 families split a $250,000 metro Phoenix home (buys you something nice in the 3 bed 2.5 bath in a gated community) then add $50k for any work that might be needed and furniture. Thus you have ownership in a fully furnished vacation home, a 3 hour flight away, for $60,000 all in with a monthly operating cost of around $200.

At the end of the day you can probably never use it more than your proportionate share of 2.4 months a year (spread throughout the year). Now you have an asset that will appreciate over time and somewhere to call home when it is minus 40 in Canada.

New Blog post I will cover off some of the things you need to consider when you go the joint ownership route.

Cheers,

Michael

 

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