Re: Replacement reserves
From: Elizabeth Stevenson (tamgoddesscomcast.net)
Date: Fri, 9 Apr 2004 08:12:58 -0700 (PDT)
Co-ops ARE groovier. The reason it's hard to get a bank to finance a co-op
is that they don't make a profit for the homeowner. I may have some details
wrong, but you basically get out of it what you put into it when you sell.
If it requires 5K (or a percentage, whatever) to buy in, you get 5K when you
leave, and the next person gets the same deal. So, for instance if you live
in California and property values skyrocket, as they often do, you are stuck
in your co-op, unless you have plenty of money to start over somewhere else.
You don't build equity. I personally would be unable to buy another house in
Sacramento without the equity I now have in my house, which has more than
doubled in value in a really short time, maybe 18 months or so.

If there were a lot of co-ops here, it would be do-able, but there aren't.
It would require legislation, I guess, so that may never happen.

In a more stable market like Ithaca, it makes more sense, especially if you
want to attract lower-income buyers and have units that are earmarked for
affordability. The units stay affordable, and people aren't as trapped after
living there. Maybe I'll retire in Ithaca...

-- 
Liz Stevenson
Southside Park Cohousing
Sacramento, California
lilbert [at] comcast.net

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> From: Joe Nolan <jnolan [at] adobe.com>
> Reply-To: Developing cohousing - collaborative housing communities
> <cohousing-l [at] cohousing.org>
> Date: Fri, 09 Apr 2004 10:54:21 -0400
> To: Developing cohousing - collaborative housing communities
> <cohousing-l [at] cohousing.org>
> Subject: Re: [C-L]_ Replacement reserves
> 
> Elizabeth Stevenson wrote:
> 
>> I wasn't even aware there were co-op cohousings, so that's how rare you are
>> (or unaware I am)!
>> 
>> 
> We have 2 coop coho neighborhoods at EcoVillage.
> Not sure why it was chosen instead of condo.
> It does sound groovier.
> ;)


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