A Homeowner’s Story

Meet Marie and Joe,

They have lived in the same suburban home since the '90s. They love the neighborhood, with its familiar grocery store, park, and place of worship, creating a strong sense of community. Three years ago, their oldest son moved out after university, leaving the house feeling big and quiet. Even the garden seems more significant, and Joe is growing tired of cutting the grass each summer, procrastinating a bit more each year.

The house hasn't undergone any renovations since they moved in. While the style doesn't bother them much, signs of wear and tear are becoming noticeable. Three kitchen drawers don't close properly, and one door keeps falling off, regardless of how many times Joe tightens the screws. Change seems necessary, but it's also daunting.

The real estate market is uncertain, they're mortgage-free, and reluctant to take on new debt. Retired for seven years, Marie and Joe depend on a fixed income from their RRSP and pension.

Marie discovers an ad for NEWHOUSE (a working title) with four options:

  1. Buy a turnkey redevelopment package starting at 799k. They'd get a new 4 unit house, move into one, and rent the rest through NEWHOUSE. This offers a "right-sized" place, no maintenance, and added property value. Although they'd incur some debt, they believe the new tenants would offset the cost. Marie is excited about having more life around.

  2. Sign a land lease, and NEWHOUSE builds the 4plex. Similar to option 1, but with no financing required. The land lease equals the rent for two units, which they can use for themselves and their family. Joe appreciates the lack of debt and the potential to make extra money if they decide to use only one unit. It's preferable to a reverse mortgage.

  3. Convince adjacent neighbors to follow suit, adding 40-50% more space and increasing property value.

  4. Sell the property to NEWHOUSE for the value in shares of the REIT. The shares are locked in for five years, during which their value is projected to increase. They'll receive distributions for their shares, and the property will be redeveloped by NEWHOUSE. They can choose to become tenants if they prefer.

Best of all, NEWHOUSE takes care of everything—permits, development, tenants, landscaping, fences, and more. Their modular construction system guarantees completion in two months, and NEWHOUSE assists them in moving into a furnished apartment during construction. Their belongings are stored and moved back into their new unit when it's done—a white-glove service.

They've been spreading the word to friends, and with many following suit, they share their referral code. It looks like they'll be able to enjoy their Hawaii vacation this year