Investment in Shares Calculation Worksheet
For the first part of the project group members purchase shares in the development company. The price of the shares changes over time based on the risk on the project, and the minimum share purchase is $50,000 to become an equity member.
| Investment Phase | Amount Invested | Share Price | # Shares |
|---|---|---|---|
| Land Purchase | 0.50 | ||
| Initial Design | 0.65 | ||
| Detailed Design | 0.75 | 66,667 | |
| Construction | 0.85 | 117,647 | |
| Total Invested: | $150,000 | 184,314 |
Home Purchase Price Scenario
Illustrative purposes only‐not an offering for sale or financing. East Van Cohousing is an opportunity to invest in a real-estate development project.
The following calculations are intended to be relative and approximate. You should consult with a mortgage broker or bank to get information tailored to your specific situation.
We reccommend Lysa Dixon as a mortgage broker who is also knowledable about cohousing.
| Unit Price Calculation | Studio 1 Bath 450 s.f. |
Note |
|---|---|---|
| Unit base price | $584,550 | At this stage we don't have a complete design or estimate from a builder so this is an educated guess, also known as a class D estimate. |
| ... Per Square foot | $1299 psf | You can use the price per square foot to see the price is simlar to other projects in area. |
| Add GST | $29,228 | |
| Purchase Price | $613,778 | |
| Less estimated GST Rebate | $0 | Normally this is 0. |
| Add Property Transfer Tax | $10,276 | |
| Add Purchase Legal Costs | $2,000 | |
| Add Appraisal | $450 | |
| Add Title Insurance | $250 | |
| Total Closing Costs | $12,976 | A lender is going to want to see that you have that available on top of your down payment, before they will give you financing. This does not count as your downpayment, but as extra costs. |
| Total funds required | $626,753 | This includes the price of the unit and closing costs at completion. |
| Mortgage Estimation | ||
| Mortgage Rate | 5.5% | |
| Mortgage Amortization | 25 years | |
| Effective Down Payment | 27.9% | |
| Purchase Price | $626,753 | |
| Less Payments and Credits | $184,314 | |
| Add CMHC Fees | $0 | |
| Mortgage Amount | $442,439 | |
| Monthly Mortgage Payment | $2,749 | |
| We have the expectation that you talk to a lender or mortgage broker and get a pre-qualification to assess what kind of unit you can afford. People are often surpurised at how income is determined and ther are a host of other factors that will affect your individual situation. | ||
| Monthly Expenses | ||
| Mortgage Payment | $2,749 | |
| Strata Fee | $251 | |
| Utilities | $251 | |
| Property Taxes | $145 | |
| Total Monthly Cost | $3,145 | |
Note that the strata fee includes:
- Building insurance
- Water, sewer, garbage and recycling
- Building maintenance and major repairs
- Heating for common areas
- Janitorial and Landscaping
- Hot water
| Mortgage Qualification | ||
|---|---|---|
| Mortgage Qualifying Rate | 7.5% | |
| Income to qualify per CMHC guidelines | $124,036 | Based on 32% GDS Ratio. (1) Assumes no other debt. (2) This is complicated, talk to a mortgage broker or lender. |