COOPERATIVE SELF-BUILDS

A VISION FOR FUTURE INTEGRATED ECO COMMUNITIES, AFFORDABLE HOUSING WITH PASSIVE HEATING AND MACRO GENERATION

AFFORDABILITY | CONVEYANCING | COUNCILS | FINANCE | HOMES | INDEX | LINKS | RENTALS | VILLAGES

 

 

 

SOCIAL LANDLORD (SIMPLIFIED) BASIC BUSINESS MODEL - 100 units on a 12 acre site

 

This is based upon buying previously undeveloped land in bulk (greenbelt),  rather than as prime  development plots of land, for which approach the policies cited above are supportive, if the council concerned has not identified and earmarked land for affordable housing. On the other hand, councils are encouraged to purchase land compulsorily for affordable housing. The financial model that follows is to build 100 homes which incorporate all of the 'RE' features as set out in Section 2. As a guestimate, 5 million pounds would ne needed to develop a 12 acre site, such that plots are a respectable size, together with typical village infrastructure.

 

 

COOPERATIVE (SELF BUILD) BASIC BUSINESS MODEL

.

.

.

.

.

YEAR

BORROWING

  INTEREST 6%

PAYBACK

     DRAW

.

.

.

.

.

1

5,000,000

    300,000

300,000

200,000

2

4,700,000

282,000

318,000

200,000

3

4,382,000

262,920

337,080

200,000

4

4,044,920

242,696

357,304

200,000

5

3,687,616

221,257

378,743

200,000

6

3,308,873

198,533

401,467

200,000

7

2,907,406

174,445

425,555

200,000

8

2,481,851

148,912

451,088

200,000

9

2,030,763

121,846

478,154

200,000

10

1,552,609

93,157

506,843

200,000

11

1,045,766

   62,746

537,254

200,000

12

508,512

30,511

   508,512

260,977

13

  Nil

  Nil

  Nil

800,000

.

.

.

.

.

Renting model for : 100 unit village costs to build est @ =  5 million  

.

.

.

.

.

Income on completion:

Rent x 50 units 

    @ 600 month = 360,000

.

.

Rent x 50 units

  @ 250 month = 150,000

.

.

_____________________

. 510,000  

Equity stake of village:  10 million  [not including feed in tariff macro-generation]

 

The above example is concerned to pay back borrowed money as a priority, taking a lesser drawing for property administration. Rents generated from 100 units is likely to be in the region of 400 - 500 a month depending on the mix of 1, 2 and 3 bedroom properties. So 4,800 -  6,000 per annum per unit, multiplied by 100 units =  480,000 -  600,000 - hence the ability to repay up to 300,000 in interest with 200,000 remaining for administration. After 12 years, the site is free of borrowings, when the real profit comes online - to be used for future developments, or shareholder dividends. Bearing in mind that our ethos is much the same as the old building societies. Commercial social landlords would appreciate the long term investment. Housing associations (self builds) would in effect repay their mortgages very much sooner, than with a conventional building society mortgage.  

 

 

EASTBOURNE AFFORDABLE BUILDING SOCIETY

 

 

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