Development designed to help middle income earners achieve home ownership seeks approval
PORT MOODY, British Columbia, July 21, 2020 (GLOBE NEWSWIRE) — The 3000 Henry development proposed by Aultrust Development that offers a popular rent-to-own (RTO) option goes before Port Moody City Council July 28th for third reading.
More than 200 Port Moody residents have shown interest in the RTO opportunity designed to help middle income earners who can afford to rent but cannot save enough money for a down payment to buy a home.Under the RTO program, people now renting in Port Moody with a $5,000 deposit can use the market rent they pay for two years as a credit toward the purchase of the home. The developer pays all property tax and insurance during that two-year period. The savings from rents and time-value of deposit can add up to 10 per cent of the purchase price.The RTO would apply to 17 suites in the proposed development in Port Moody centre that is conveniently located just off the main thoroughfare of St. Johns Street and is close to Skytrain and the West Coast Express.The purchase price is fixed at the time of pre-sale. This solves the challenge of home prices appreciating faster than people can save money. Assuming an average appreciation of four per cent a year, through the RTO model, prospects could achieve an estimated 20 per cent discount over the five-year period (two years of rent and three years of construction) should prices continue to escalate over the course of the five years of construction and rent period.Prospects may also be helped through increasing the down payment and taking out a conventional mortgage with a 20 per cent down payment, eliminating the need for the mortgage insurance premium which could be another three per cent cost.Thus, with the RTO program, savings could add up to a 30 per cent discount, making a substantial difference to prospective buyers, and particularly first-time home buyers.The terraced design for the proposed 3000 Henry development reflects its hillside location in Port Moody. It has won widespread acceptance with Port Moody residents along with community groups and will bring a diversity of multi-family housing options to Moody Centre with 173 apartments and ground-oriented homes. Smaller studio and one-bedroom suites will be available, with the majority being two-plus bedroom suites.For more information