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How is this any different from owning shares in a housing cooperative? Aside from the risk being - possibly - divided across multiple properties, I don't see ho
by zhdc1 6y ago
How is this any different from owning shares in a housing cooperative? Aside from the risk being - possibly - divided across multiple properties, I don't see how this would solve the main issues driving appreciating housing prices any better than attacking their root causes (build more housing supply, limit housing speculation, and prevent overleveraging).
- nemo44x 6y agoThat’s what I was thinking. However, there are some co-Ops in NYC that allow you to buy shares at a really cheap price VS what the market would pay. But when you sell, the co-op sells the shares so although you profit, you won’t be as much as if it were sold at market value. But you paid below market so it works out. However, these aren’t just open to anyone. You need to know people to get in. It’s a self policing community that takes care of each other over generations. Even if you’re “in”, you’ll likely be on a waiting list until availability opens up.
- zhdc1 6y agoA lot of older condominiums in the states were originally housing cooperatives because the legal structure at the time didn't have an easy way to handle communal living (e.g., apartments). There are even more of them in Europe, although you're generally expected to pay a significantly higher amount up front and actively participate in common area maintenance and (in some cases) participate in social activities and the like.