Housing and Property Ownership
Submitted by Mike Morin on 25 January 2009 - 8:38am
Housing and Property Ownership
Concurrent with financial systems reform, discussed in a previous essay where equity sharing and not-for-profit equity investing would replace the current financial paradigm of for-profit equity investing and usurious credit arrangements, we need to evolve to a different system with respect to residential and other real property occupation arrangements.
In lieu of rent or leases, people should be allowed to acquire equity in their abodes and business properties. For example, in the case of an apartment, if one paid $500 per month to a property management firm, let's say $50 per month would go to property maintenance, and another $40 to administration fees, insurance, etc. This would leave the resident with $410 of accumulated equity added to their account each month. If we had a large cooperative housing organization (preferably world-wide, and preferably the only form of property ownership) then when someone had to move or wanted to move, they could take their equity with them to the new property.
With regards to mortgages, they are horribly usurious and should be banned. The scenario related above would also replace the current system of financing "home ownership loans".
A huge problem that we are facing now is the terrible inflation in the market values of real property (and capital assets, for that matter). If we pooled our equity, pooled our assets, and collectively wrote off our liabilities, then we could significantly write down the market values of real and capital assets.
Lets organize housing co-ops
At the grassroots level we could build up existing housing co=ops and create new ones. They could vary in structure and mission so as to give us a diverse set of models. It will be easier to build from what is out there than to get widespread buy-in for what would be denigrated as socialist if proposed as a government originated program.
I personally believe however, that government should guarantee people have a place to live. If done well it could reduce car dependency in the process. And of course clinics and day care and neighborhood gardens and commercial, community, transportation and entertainment centers should all be walkable.