Al-Khafaji presents shared equity model and homeowner wealth building
Al-Khafaji shows a chart of estimated equity from selling a two-bedroom unit, with $32,000 after one year and $152,000 after ten years, explaining the shared equity system balances wealth building with permanent affordability.
Residents will have the opportunity to build equity in this process.
Shown here on the slides is a chart that is the estimated equity a homeowner would earn from selling their two-bedroom unit at differing points of the conversion.
Selling after one year would earn them approximately $32,000, as 95% of the profit would go back to the cooperative, whereas selling after 10 years would earn them $152,000, where 20% of the profit will go back to the cooperative.
Ultimately, the goal of this shared equity system is to build wealth.
To balance wealth building for shareholders and their heirs with permanent affordability for the community.
Next slide, please.