Re: Affordable unit for sale
From: Elizabeth Magill (pastorlizmgmail.com)
Date: Wed, 7 Sep 2016 08:53:23 -0700 (PDT)
When I bought my present cohousing house it was priced well over the market 
value. (Because our costs were high and the market had just crashed.)

I found an article on treating your house as *housing* rather than as an 
investment and using their formula I figured out that it was ok to over-pay—at 
the end of 10 years if I sold it for the amount I still owed on the mortgage 
I’d break even.

The formula was to find where you would likely rent if you didn’t buy, and 
consider that the value you are receiving each month. Compare that to the 
amount you are spending—mortgage payment, taxes, etc., plus the cost of the 
downpayment. The question you answer is when does your total expenses equal the 
value you’ve received so far.

But should the market improve enough, or I stay in the house long enough to get 
more than break-even money, or, similarly, if I need the *profit* in order to 
make a downpayment on the next house, I would be hard-pressed to not sell for 
market rate.

My fear would be that I’m just passing the profit on to the next homeowner, 
rather than that I’m maintaining affordability for the long haul. That is why 
deed restrictions are important. Then I could be assured that my decision to 
break the system would actually break the system, not just take me for a sucker.

(Also “affordable” in the for sale market in Massachusetts means "affordable to 
someone who makes 80% of median income.” The affordable homes in our community 
are restricted to a small percentage increase in the value of their home 
compared to when they bought it, and the percentage is set so that a person 
making 80% of median income could theoretically still afford it.)

-Liz
(The Rev.) Elizabeth M. Magill
www.ecclesiaministriesmission.org
www.mosaic-commons.org
508-450-0431




> On Sep 5, 2016, at 8:55 AM, Nancy Csuti <nancycsuti [at] gmail.com> wrote:
> 
> 
> This represents a dilemma of cohousing - or any housing for that matter.
> Someone's house is often their largest single equity and important for
> their financial security. So when it comes to selling, should one sell at
> market rate ($300 = a sq foot in many urban areas), or sell at less than
> market rate, loose what would be income, but ensure diversity of home
> ownership?
> 
> I watch homes in my Denver neighborhood (not cohousing) sell to developers
> almost weekly. All the neighbors want young families with kids to move in.
> But the developers pay $400 a sq foot. So if I plan to sell, my choices are
> - sell to a developer and get enough money to retire, or sell well below
> that rate to a family who would love to enjoy the neighborhood for years to
> come. There is an ethical and financial dichotomy here. But as long as for
> many of us our futures are tied up into the value of our home, shouldn't we
> get what we can? I know that cohousing residents much feel the same as I
> see the units for sale near my and they are all at market rate. The only
> non-market rate cohousing I have seen is really for VERY low income people.
> 
> I don't see prices going down anytime soon.
> 
> Nancy in CO.
> 
> On Sun, Sep 4, 2016 at 10:20 AM, Ingram Paperny <shakermillinn [at] 
> fairpoint.net
>> wrote:
> 
>> 
>> John and co housing.org, This demonstrates one of the reasons for the
>> difficulty co housing has in connecting with economically diverse and
>> potentially interested cohousingniks. $300 + per sq. foot! Ingram Paperny
>> 
>> -----Original Message-----
>> From: Cohousing-L
>> [mailto:cohousing-l-bounces+shakermillinn=taconic.net [at] cohousing.org] On
>> Behalf Of John Goldberg
>> Sent: Sunday, September 04, 2016 11:06 AM
>> To: cohousing-l [at] cohousing.org
>> Subject: [C-L]_ Affordable unit for sale
>> 
>> 
>> We are selling our 820 sq ft upstairs flat diagonal from the common house
>> in
>> Southside Park Cohousing in Sacramento for the same reason - moved to a
>> larger home in same coho community because our family expanded. The price
>> is
>> $269k. Info at 418 T Street on Zillow.com
>> 
>> John Goldberg
>> 
>>> On Sep 4, 2016, at 3:38 AM, cohousing-l-request [at] cohousing.org wrote:
>>> 
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>>> Today's Topics:
>>> 
>>>  1. affordable unit for sale at FrogSong (Cotati, CA)!
>>>     (Fred-List manager)
>>> 
>>> 
>>> ----------------------------------------------------------------------
>>> 
>>> Message: 1
>>> Date: Sat, 3 Sep 2016 07:55:54 -0500 (CDT)
>>> From: Fred-List manager <fholson [at] cohousing.org>
>>> To: Cohousing-L mailing list <cohousing-l [at] cohousing.org>
>>> Subject: [C-L]_ affordable unit for sale at FrogSong (Cotati, CA)!
>>> Message-ID: <alpine.DEB.2.02.1609030753360.17620 [at] web02.tigertech.net>
>>> Content-Type: TEXT/PLAIN; charset=US-ASCII
>>> 
>>> Eris Weaver <eris [at] erisweaver.info>
>>> is the author of the message below.  It was posted by Fred, the
>>> Cohousing-L list manager <fholson [at] cohousing.org> due to a problem.
>>> 
>>> 
>>> --------------------  FORWARDED MESSAGE FOLLOWS --------------------
>>> My neighbor Dave Ergo is selling a two-bedroom unit here at FrogSong.
>>> This is unprecedented - so far none of the smallest units have gone up
>> for
>> sale!
>>> (He's moving to a larger unit as his family expands.) It is also part
>>> of the city's affordable housing program, so there are income
>>> requirements and resale restrictions. Here's his blurb, with a link to
>>> more information (including what you have to do to qualify). If you
>>> have questions, READ ALL OF THE WEBSITE INFO FIRST and then contact Dave,
>> not me.
>>> 
>>> 
>>> Affordable Housing Townhome for Sale at Frog Song Cohousing
>>> 
>>> This sunny, two-bedroom, one-bath cohousing townhome for sale is part
>>> of the Frog Song Cohousing Community in Cotati, CA. It is an 871
>>> square-foot upstairs flat next door to the Common House. It is part of
>>> the City of Cotati's Affordable Housing/Inclusionary Zoning program,
>>> which means that it has certain restrictions regarding price and the
>>> income level of the buyer-qualified buyers therefore have a smaller
>>> pool of people to compete with. For more information about this home,
>>> see the website at https://frogsong14.wordpress.com).
>>> 
>>> 
>>> Eris Weaver for Cotati City Council
>>> eris4citycouncil [at] erisweaver.info . 707-338-8589
>>> https://www.facebook.com/ErisWeaver4CotatiCityCouncil
>>> 
>>> <https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=
>>> BJE9HV
>>> H62V8Y2>  to make a campaign contribution!
>>> 
>>> 
>>> 
>>> 
>>> 
>>> 
>>> 
>>> 
>>> 
>>> 
>>> 
>>> 
>>> 
>>> 
>>> 
>>> 
>>> ------------------------------
>>> 
>>> Subject: Digest Footer
>>> 
>>> _________________________________________________________________
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>>> ------------------------------
>>> 
>>> End of Cohousing-L Digest, Vol 152, Issue 4
>>> *******************************************
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