We’ve been working hard the last few months exploring how best to steward our resources and leverage our physical space to help fulfill our mandate of telling the story of Jesus in our city, and beyond.
Quick Background Info
We began renting our current spaces (179 & 181 Christina St. N) on November 1 for $3.00/sq.ft, $2.50 less than advertised. The lease is for 2 years, but if we should choose the purchase the property prior to November 1, 2008, the landlord will apply 100% our rent towards the purchase price of the building. The purchase price is $200,000.
We approached the Free Methodist Church of Canada (our denominational affiliate) about holding our mortgage (a service they offer to their churches). However, since we’re a developing assembly, this agreement would have to be brokered through New Horizons Community Church (another Free Methodist Church) here in Sarnia. Thankful that each of these bodies would partner with us, we’re now putting the wheels in full motion to make this purchase a reality.
Breaking Down the Numbers
Mortgage offered by the Free Methodist Church in Canada: $120,000
Deposit required by theStory: $80,00 minus the total rent paid at time of purchase
Since we began renting our space we’ve been approached by a handful of outside organizations wishing to rent 181 Christina during our off hours. At this time, if we agreed to sublet, the extra income would amount to $1300 per month. However, in order to sublet, our landlord requires that we put a $5,000 deposit down and agree to purchase the space by July 31, 2008.
What are the Benefits of Purchasing the Space at this Time?
Depending on interest rates, it would cost us less to own the space than to rent it. Further, the extra income derived through subletting would cover nearly the entire mortgage payment.
So What’s Next?
As a community, we need to decide how to best steward our resources. We do have a private investor who may be interested in helping towards the $80,000 deposit which in actuality would be $62,625 [$12,375 in rent + $5000 deposit] , but we also need to look to the community for buy in. So, the question remains, ‘what’s next?’ We’ll chat about it a bit this coming Sunday.
If you have any thoughts or questions in the meantime, contact Joe at 519.381.6998