|Re: Cap on resale of homes||<– Date –> <– Thread –>|
|From: Leah (drsweetieyahoo.com)|
|Date: Wed, 18 Jan 2006 08:41:36 -0800 (PST)|
I can answer this I think because I was once given the assignment to research this for Fordyce Street cohousing. We happen to be in an area in which home prices are very high so our homes will be under market value. We will be tying our equity limits to the percentage of market value at which we sell our homes (so if my house is finished and the cost is 80% of the appraisal when I sell it we appraise it again and it can be sold at 80%) This is not common. Most resale caps are done on low income units to keep real estate that is subsidized from being turned around by the owners for windfall profits. Those are usually tied to the consumer price index, which is only about 2%/yr. You might hit some problems finding lenders if you do this on free market homes, but it isn't impossible and there are some lenders that work with low income homes that are used to dealing with it. perri ardman <perriblaze [at] yahoo.com> wrote: Hi -- Looking for ideas about how to set a cap on resale prices. We want to discourage speculators, encourage affordable prices, and not create hardship for owners who want or need to sell. Is there a suggested percentage over and above the original price the owner paid? Is there some formula that might relate to the market value or rate of appreciation of real estate in the area? Thanks. You can send responses to perriblaze [at] yahoo.com _________________________________________________________________ Cohousing-L mailing list -- Unsubscribe, archives and other info at: http://www.cohousing.org/cohousing-L/ --------------------------------- Yahoo! Photos Got holiday prints? See all the ways to get quality prints in your hands ASAP.
Cap on resale of homes perri ardman, January 17 2006
- Re: Cap on resale of homes Leah, January 18 2006
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