|equity caps||<– Date –> <– Thread –>|
|From: Philip W. Bush (Philip.W.Bushdartmouth.edu)|
|Date: Thu, 12 Aug 1999 10:26:27 -0600 (MDT)|
Hello, At Cobb Hill we need to make a decision soon about whether or not to limit equity gain in houses by indexing the increase in price to CPI, rather than letting the market determine price. This is complex, and I apologize for the length of my inquiry. We may have some subsidized affordable housing units where equity limits are required by the funding. Our current question is whether to impose similar limits on all units in order to keep costs low for future buyers. One of our members has written, "I have a sense of conflicting world views - neither is right or wrong per se - but they are very different. One world view is that to ensure my security and well being - and that of my family - it will be necessary to own my home like an investment - to be able to realize the market warrented gain. That limits imposed by something other then the market will constain my ability to find new housing, provice for my children, retire.. etc. And some people have had this experience. The other is that my housing and community are a place to make my values and ideals concrete. They provide a way to separate out my lviing from "the market" to give expression to ideas of generiosity to future families and generations, to keep in the community values crated by our work together. A willingness to take a big risk. Both these view have embedded in them numerous assumptions and interests. I am wondering if we could get a bunch of information from somewhere. For instance - I wonder how many people actually sell their homes for more then cost plus inflation - esp. if you take into account what a mortgage actually costs. In other words - will having a fixed price agreement likely lose anything? Or really make a difference?" I am curious what other co-housing communities have done - is it possible to put this out on the co-housing list as a question? And to get more information about the impact of limited equity in affordable housing developments that are several years old?" Do any of you have established equity limits have experience you can share? How about those who have not? Thanks, Phil Bush Cobb Hill Hartland, VT www.coopsports.com/cobbhill/
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