Stop wasting your- rent - set up housing Co-operative

antrobus

mohawk wrote: »

...The co-op could then buy that home with it’s own supply of money ....

Co-ops have a magic supply of money? Who knew?

mohawk wrote: »

....This is the reason there is a recession.....

The recession is over.

mohawk wrote: »

.....It first started when all the banks took fright in 2007 and stopped lending to each other because of Lehmans bank going bust when all the other banks became too frightened to lend their money to Lehmans & each other because they could see Lehmans had already borrowed too much & could not pay it back.....

Lehmans went in bust in 2008. So obviously what happened in 2007 had nothing to do with that.

mohawk wrote: »

...Read a lot more about it on the ‘Positive Money’ website here. http://www.positivemoney.org/how-money-works/how-banks-create-money/
.....

How can I put it? The ideas promoted by ‘Positive Money’ are nonsense, claptrap, that are about only one degree or so less insane than the standard FMOTL rubbish.

All of which might possibly explain why the OP is having such problems finding "anyone bright enough" to join them in their grand cunning plan.

jjlandlord

antrobus wrote: »

Co-ops have a magic supply of money? Who knew?

Well, Coop did think they had

mohawk

can you explain what only one degree or so less insane than the standard FMOTL rubbish.
is

I understand English, but do get rather unstuck with acronyms, which, if not explained are very, very silly.

booksurr

mohawk wrote: »

can you explain what only one degree or so less insane than the standard FMOTL rubbish.
is

I understand English, but do get rather unstuck with acronyms, which, if not explained are very, very silly.

the downside of an open university degree is that they allow people to sit degree level who really shouldn't

I take it that you have not mastered that the difference between A level and degree is the ability to undertake your own research without being spoon fed the answer

http://lmgtfy.com/?q=fmotl

mohawk

booksurr My - what a muddled collection of disjointed verbal garbage.

booksurr;66724142]
so your business plan appears to be:

- find alternative sources of funding outside of the "banking system" to enable you to purchase property because you have ethical objections to banks

errrrr ......... ? a co-op might want to use a bank to get a mortgage or it might want to use crowdfunding or any other source of funds that is appropriate.

- offer a rate of return to your lenders which is higher than the banks can currently provide but fix that rate because your future success depends on a static cost of borrowing. All that at a time of historic low interest rates which within a matter of 1 - 2 years will resume their rising trend therefore removing the margin your lenders have at the moment leaving them invested in a static product with no growth potential and little marketability

errrrrrrrrrrr...? I haven’t said anything about the details of how anything would work, so you are just inventing a whole load of codswallop from your own imagination. I said nothing about fixing the rate, for instance, or that the cost of borrowing would be static.
Actually I have in mind the cost of borrowing would go up & down along with the Bank of England base rate.

- offer your co-habitees a lower rent that a private LL would require because you are not a greedy LL and have no personal profit agenda (really???)

I never said anything about me being a co-habitee with anyone ! And the idea is to organise something without a profit motive beyond tenants being able to build up a share in the value of housing. No. I’m definitely not a greedy landlord either, another figment of your fevered imagination, I afraid.

- allow your co-habitees to withdraw the rent they have paid at a time of their choosing because they need to move

Of course tenants can move at any time of their own choosing and they would be able to have whatever value they had already built up.

Question: where do you think the cash is coming from to cover those repayments or is your plan to continually refinance on the basis that house price inflation means the asset value is increasing relative to the loan . But wait, your lenders don't own the property or have a mortgage over it because you disdain banking as the co-habitees are the owners

This comes across as childish gibberish really, but I think you mean to say, nope I haven’t a clue what you’re trying to say after all because it’s all nonsense.

But the cash to buy homes would ideally come entirely from crowdfunding (just like the Landbay crowdfunding site aimed at supplying mortgages to buy to let landlords) which seeks lenders so that money can be given to buy to let landlords for their profit) but ordinary mortgages from banks might also be suitable to use as well.

The cash to repay the loans would come from the rents the tenants paid. Doh !

The Landbay site offers lenders about 3.5% and then lends that money as a mortgage to buy to let landlords at about 5%.

In my case the money from lenders would not be lent on but spent buying our own homes, fully owned and managed by the co-op, thus providing good security for all the lenders, but not in the form of mortgages. I mean why would you give a lender lending £10 or £100 a mortgage over a property ?

I admire the fact your have decided to reinvent yourself and have a clear area of personal interest which you wish to follow based on your now being a graduate, however, your presentation skills and your general demeanour of how you write and refer to your readers leaves a lot to be desired if you expect to compete in a professional marketplace. Your comments about the money system also show that your grasp of economics is somewhat conspiracy theory rather than being based on a sound understanding of simple supply and demand. Presumably as a LL of 30 years you did not supply accommodation in an area where there was demand for it and you did not charge a market related rent because you did not want to make a profit

Imaginary gibberish again, I’m afraid. I don’t know about being a graduate - or not. I may be a graduate, I may not. YOU have absolutely no idea at all.

Seeing as how I have spent a number of decades as a person being paid for their specific ability in communications, presentations, being able to advise directors of large companies on these issues and as a competent wordsmith whose writing has had to pass the scrutiny of editors of public journals such as daily newspapers & the like, you are obviously talking cobblers born of petty minded spite. Congratulations.

As for my grasp of economics; I make no claims at all about my understanding of economics. But I do have some grasp of at least the basics and unlike many people, I DO have a grasp of where money comes from or where it is manufactured, so to speak.

There are some other aspects of economics I think I know, such as when buying my groceries, I need some money to pay for them, just a lot of basic things like that you know. Do you understand economic principles like this too ?

London, Johannesburg and Bristol were mostly where I was a landlord, all places of high demand and you gibbering about you announcing you presume I must have rented at a specially low rent because I must of not wanted to make a profit is just that - gibbering, meaningless nonsense & spite.

booksurr

mohawk wrote: »

booksurr My - what a muddled collection of disjointed verbal garbage.

so once again you fail to respond to a genuine question and instead descend into insults

mohawk wrote: »

The cash to repay the loans would come from the rents the tenants paid. Doh !

and where are you going to get that cash from eh?

The tenants pay your (not their) co-op and miraculously the co-op is able to refund the tenant (on demand) with the full amount the tenant has paid whilst the co-op is still able to service its debt? Dream on.

your business plan is cuckoo

Somerset

mohawk wrote: »

But the cash to buy homes would ideally come entirely from crowdfunding (just like the Landbay crowdfunding site aimed at supplying mortgages to buy to let landlords) which seeks lenders so that money can be given to buy to let landlords for their profit) but ordinary mortgages from banks might also be suitable to use as well.

mohawk wrote: »

In my case the money from lenders would not be lent on but spent buying our own homes, fully owned and managed by the co-op, thus providing good security for all the lenders, but not in the form of mortgages. I mean why would you give a lender lending £10 or £100 a mortgage over a property ?

Isn't this a contradiction ?


I looked at the Landbay site - they require security :
The independent Security Trustee then enters into a single set of security documents with the borrower and holds that in trust for the lenders. There is always a first-ranking mortgage held over the property offered as security (which is registered with the Land Registry).


But despite quoting Landbay, you wouldn't offer security ? So who would lend to you ?

[Deleted User]

I suspect the OP just wants to yap on rather than make sense or listen. I suggest people stop replying. He might have more fun if left to his own devices lol.

chewmylegoff

I expect the reason that there aren't many co-ops is that the only people who want to live in them are hippies who want to grow vegetables in lieu of paying rent meaning that the model will only work if someone is willing to pay the hippies' share of the costs so that the hippies get to have a free house to live in. Generally speaking people don't live giving their hard earned cash to free loaders in exchange for a courgette or two as they can buy vegetables from the shops for rather less.

The only way this works is if you take the money by force (let's call it 'tax') and redistribute it to the people who can't or won't pay for a house (let's call it 'housing benefit'). Where have I heard of that before?

mohawk

We have some truly ignorant people here. It brings to mind my comment about finding people bright enough to have an adult conversation with about this subject.

Curious how some people making the more ignorant comments have posts running into thousands - it looks like an indicator of the serial stalker sort, sad people who get off on just being nasty. Just on the web instead of lurking somewhere else.