Cohousing-L Mailing List: Lot Development Model

[Cohomag (Cohomag]

It seems to me that quite a few valid points have been made in favor of the
lot 
development model as opposed to the standard production model for
multi-family housing 
(which people have been referring to as the Danish model).
However, one point that has been lost is that the cost of purchasing a
sizable piece of 
property (if you're forced to buy it all at once) can -- in some areas --
make the lot 
development model economically impractical due to the high carrying costs.
 If you're 
buying an urban parcel for half a million dollars or more and it's being
financed in some 
way, the interest charges are going to be very substantial, not to mention
property tax, 
insurance etc.  The only way to keep from going broke is get the units built
as quickly as 
possible so that members can move in and start to realize some value from the
property 
(instead of paying big bucks to hold a vacant lot).
Also, regarding economies of scale, I don't know much about the potential
savings on 
materials, but it seems to me that the production model offers substantial
economies in 
terms of professional fees.  Obviously it's a lot cheaper per unit to engage
one architect to 
develop three or four basic plans than to engage thirty architects to develop
plans for 
custom homes.  I understand that some people have the time, inclination and
ability to 
design their own homes, but I suspect that most people don't.
Don Lindemann
cohomag [at] aol.com