|Re: Financial structure advice needed for forming group||<– Date –> <– Thread –>|
|From: Andrew Netherton (andrewnethertongmail.com)|
|Date: Sat, 25 Nov 2006 11:35:57 -0800 (PST)|
I must admit, this is an interesting approach to looking at a large cash outlay:
I understand that young families are putting up a larger amount of their ready cash, but they stand to reap a much higher benefit: a very much longer period of their lives living in the community. I would have given almost anything to raise my children in cohousing, and I may have only a 15 year lifespan to live in the community based on actuarial tables. In contrast, a young family is receiving an incredible experience for their children and a chance to live in the community for 40-45 years. In my mind, this advantage for the young families balances out the higher percentage of their available funds that young families need to contribute.
Yes, what you say is true, my young family and I could benefit for a much longer time. Unfortunately, there are two problems with this assumption. First, there are no guarantees. My wife may hate cohousing, or I may get a new job in a far off land in three years. So there is nothing guaranteeing a longer payback period that what you (actuarially) will be getting. Second, just because the benefit is bigger doesn't mean that we're actually able to put up more. Although you may be pulling in only a moderate retirement income, you probably have more disposable income than I hope to ever have in the next two decades, as I'm paying both a fairly new mortgage (15 years to go), two vehicles (hope to lop that in half soon), two RESP (educations savings - and we're not done having kids), not to mention all the clothes that my kids outgrow every 4-6 months that have to be replaced. Yes, my kids, my wife, and I will lead a much richer life in cohousing, but that doesn't do squat for the monthly bills. Having said that, if I had access to the equity in my home and was still able to live in my home, without increasing my monthly payments, I'd happily invest it all in a low-risk cohousing development. Regards, Andrew Netherton Laurel Creek Commons (forming) Waterloo, ON, Canada
- Re: Financial structure advice needed for forming group, (continued)
Re: Financial structure advice needed for forming group Dave and Diane, November 22 2006
- CoHousing and Mortgages balaji, December 29 2006
Re: Financial structure advice needed for forming group Tom Hammer, November 25 2006
- Re: Financial structure advice needed for forming group Sharon Villines, November 25 2006
- Re: Financial structure advice needed for forming group Andrew Netherton, November 25 2006
- Re: Financial structure advice needed for forming group Dave and Diane, November 22 2006
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