HOW IT WORKS
A housing cooperative is a joint ownership in a housing development in which members own a share. Members own the building, land, and common areas. The value of the share is based on the size and type of home. Members pay a monthly fee, which is used to cover the cooperative monthly operating cost. Cooperatives are operated by their members, with a member-elected Board of Directors. There is a manager on site.
PLANNING FOR YOUR FUTURE
Consider your future. Plan a lifestyle change now, to make it easier for your spouse and your family. Find a community for great support, a safe environment and freedom from all maintenance.
MAINTENANCE-FREE LIVING
No repairs or maintenance of anything in your home. No replacement costs ever again. No more indoor or outdoor upkeep. More time to do what you love
FRIENDSHIP AND SUPPORT
Enjoy great social connections, or be as private as you want. Imagine living close to your new best friends, where there is always something to do and someone to talk to.
AMENITIES
Cooperatives have amenities that aren't available in condominiums or apartments. Enjoy the outdoor patio area, try a yard game, or grill out with your friends and sit around the firepit. You can take advantage of the fitness room, share a game of cards, or linger over a glass of wine in the pub. There is a great room you can reserve for family functions or parties. And for golfers, the close proximity of Brown Deer Golf Course, plus an on-site golf simulator won't be found anywhere else!
RE-SALE OF UNIT
Cooperatives over the years have proved to have great resale value. Many owners will live in cooperatives the rest of their lives. If you need to resell, you go to the manager of the building and advise of your intention to sell. The manager will go to their waiting list, to see who is on the list for that model. If there is no one on the waiting list, the manager will help with the resale. Cost will be $500 to $1,000 to assist with the resale. The member will resell for the original investment, plus the accrued equity each year; between 1 %-3%. Cooperatives use the Limited Equity Formula, and will set a percentage, and has the option to change over time.
FINANCIAL STEPS
First step, when you have any interest in the cooperative you pay a $500 reservation fee while you're thinking about it. This reservation fee is fully refundable. Next, after you decide to go forward and know what unit style you would like, you pay $1,500 more to secure the unit; now you have $2,000 toward the share payment. Before the building construction starts, the share will need to be paid. Shares can be paid by assets, loans on your 401K or insurance. We can also set up a local bank to finance shares, and you will repay the loan when you sell your house and move into the cooperative. Many members don't want to move out of their current homes before the building is completed. The bank will assess the value of your home to determine the loan amount for your share. After the building is complete, most members will sell their homes, pay off the share, and can invest the remaining proceeds. See Watts Group Realty about a Guaranteed Sales Plan to sell your home.