Economic Model
Table of Contents
Radical Transparency
A co-living would save about one-third to one-half of the price of a house.
In accordance with the principles we want to highlight, no information will be concealed.
Accordingly, be advised that I will be charging a 10% commission on the value of the properties
Cost of Physical Building
A co-living saves a lot on common areas compared to a conventional house. The price of a property can vary greatly depending on several factors, but for the same budget, it is therefore possible to significantly increase the quality of the property.
It is generally recognized that land represents approximately 15 to 25% of the price of a property. A kitchen accounts for approximately 10 to 15% of the value of a home. A swimming pool represents approximately 7% of the value of a residence. See references below. If we add these three elements, we can save up to 32% to 47% of the price of a property. We could add, sharing a car, mower, tools, garage, laundry room, gym, co-working space, living room, etc… Ex: a $40,000 car is 10% of the value of a $400,000 house. If we estimate these other elements at 3%, we can conclude that common areas represent approximately 35 to 50% of the purchase price of a residence. The private parts therefore represent between 50 and 65% of the price of a house.
Example: cohousing of 10 people
The price for each person will be 100 % of the private areas and 10% of the commun areas
Case 1) Common areas represent 35% of the property:
The price for each person will be: 100% of 65% (private areas) + 10% of 35% (common areas) = 65% + 3.5% = 68.5% of a conventional house
If you add 10% for the commission: 10% of 68.5% = 6.85%, The price for each person will be 68.5 + 6.85% = 75.35% of a conventional house
Cost Reduction: 24.75%
Case 2) Common areas represent 50% of the property:
The price for each person will be: 100% of 50% (private areas) + 10% of 50%(common areas) = 50% + 5% = 55% of a conventional house
If you add 10% for the commission: 10% of 55% = 5.5%, The price for each person will be 55 + 5.5% = 60.5% of a conventional house
Cost Reduction: 39.5%
Example: cohousing of 20 people
The price for each person will be 100 % of the private areas and 5% of the commun areas
Case 1) Common areas represent 35% of the property:
The price for each person will be: 100% of 65% (private areas) + 5% of 35% (common areas) = 65% + 1.75% = 66.75% of a conventional house
If you add 10% for the commission: 10% of 66.75% = 6,68%, The price for each person will be 66.75 + 6.68% = 75.43% of a conventional house
Cost Reduction: 24.57%
Case 2) Common areas represent 50% of the property:
The price for each person will be: 100% of 50% (private areas) + 5% of 50%(common areas) = 50% + 2.55% = 52.5% of a conventional house
If you add 10% for the commission: 10% of 52.5% = 5.25%, The price for each person will be 52.5 + 5.25% = 57.75% of a conventional house
Cost Reduction: 42.25%
Comparison
Example of what we can get between for about the same price between a cohousing and a conventional house. The prices are between 200 000 USD and 250 000 USD.
1) We take the example 3 from the proposition section. Cohousing, Uvita, Costa Rica: 1 485 000 USD for 7 units which means 212 000 USD + 10% (21 000 USD) = 233 000 USD per unit
Here are few examples for the equivalent amount for a conventional house
2) House in La Fortuna, Costa Rica: 220 000 USD
3) House Matapalo, Costa Rica: 229 000 USD
4) House Atenas, Costa Rica: 243 000 USD
Operation Costs
Similarly, running costs are considerably reduced: maintenance, wholesale food purchases, etc.
A network of resource persons should develop rapidly, making it possible to find reliable professionals For all kinds of works and services.
References
Land
The value of land is between 25 and 30% of the total value of the house.
smallbusiness.chron.com
According to Two Wise Acres, a good rule of thumb is 20 percent land value and 80 percent building value.
homeguides.sfgate.com
Typically, the price of land will be around 25% to 30% of your total housing project budget.
(En règle générale, le prix d’un terrain sera d’environ 25% à 30% du budget total de votre projet d’habitation.)
soumissionrenovation.ca
Kitchen
Industry experts recommend spending 5% to 15% of your home’s value on a kitchen renovation.
homestars.com
According to the Appraisal Institute of Canada, the average amount homeowners should spend on kitchen renovations is up to 10% to 15% of the overall value of their home.
greedyrates.ca
The kitchen represents 10 to 15% of the value of your property.
(La cuisine représente de 10 à 15 % de la valeur de votre propriété.)
renovation-pro.ca
Swimming pool
At most, your home’s value might increase 7% if all circumstances are right.
houselogic.com
In ideal circumstances, installing an inground pool can boost the value of your house by as much as 7%.
ibuyer.com/
Experts estimate that a swimming pool retains 15% to 25% of the original investment.
designblendz.com