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If the original investors are also living there (or bought in), then the cheaper housing costs make up for the lower returns, or no returns at all. The cheap ho
by jmiserez 9y ago
If the original investors are also living there (or bought in), then the cheaper housing costs make up for the lower returns, or no returns at all. The cheap housing is the return.
Now technically you could argue that the outcome would be the same if you lived more expensively and you were an investor in some other for-profit housing with high returns. But that’s usually not the case, as the cash amounts you’d need initially are too high for most people.
- woodpanel 9y agoAnswering both of you guys: Being an original investor of a co-op usually meant you were really struggling with the alternatives. That is a return itself. There are also private housing stock examples for that behaviour: gentrification theory sees the so-called "pioneers" who move into low-quality neighbourhoods. They are doing much of the work improving quality-of-live/attractiveness that later on others will reap the benefits from like real-estate developers and long-time landlords.