Cohousing-L Mailing List: RE: Non-ownership based Cohousing: capital requirements

[Rob Sandelin (floriferous]

Robert Arjet pointed out that what was described is the status quo about
ownership being part of cohousing and that he didn't see why it couldn't
change. I think otherwise.  One of the things that seems to make or break
projects is early risk capital investment. People who make this investment
tend to stick things out when it gets hard, because their money is at stake.
Who would make the capital investment for the land acquisition, the design,
and all the stage up to where a bank will buy it?

Early capital is a key issue with development of real estate of any kind. I
would be surprised if many developers stepped forward to do cohousing and
hold the early funding, its very risky and the returns and not any better
financially than typical development, so why take the risk of such a limited
market development?

There are lots of visionary types in the world I suppose, but I have not
seen them making investments in cohousing unless it's their own project
which means their own house. There was talk many years ago of having the
national cohousing org set something like this up, but that was very pie in
the sky even then.

So I think capital is one reason  non-ownership based Cohousing is unlikely
to change much. Unless the Feds decide to invest, and that won't be with the
current administration.

Rob Sandelin

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