Cohousing-L Mailing List: Re: Reserve Studies

[Sharon Villines (sharon]

On Aug 7, 2006, at 2:43 PM, Brian Bartholomew wrote:

> Do you mean your plan is set up for investments that earn a net 6%
> after monetary inflation and taxes?

6% in the earnings column. Then that is offset by a separate inflation 
figure. Taxes are not part of the reserve study, I don't think.

This is a new company so we aren't set up for 6% now and I don't think 
we are earning that much. But that is what we were told the new company 
is using as a current figure.

> I certainly like the goal of keeping the real estate in a roughly
> constant good condition, but I'm wondering if there are other ways to
> implement that goal that don't involve saving a pile of near-cash.

Good maintenance. Using materials that last longer, like tin roofs. 
That lowers reserve requirements but cash of some kind would still be 
required since our economy is based on it. Even if your community is 
off the grid, you would still need cash.

Sharon
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Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org