The author posted a question in Family
Housing cooperative - an alternative to a mortgage? and got a better answer
Response from
It's legal, but it has its own mechanisms. You make monthly payments and wait until the necessary amount is accumulated. As soon as it is enough, they put you on a waiting list for housing. At that time, you pay again. And you wait until the other members won't save up on your apartment at the expense of membership fees of new participants. Then you are moved in. And you all pay until you give the full amount of the apartment. It's all very similar to a pyramid scheme. But there are happy people. The main thing is not to be in the last ranks, because your money will be ruined. All my acquaintances have already taken their money from such companies?
It's legal, but it has its own mechanisms. You make monthly payments and wait until the necessary amount is accumulated. As soon as you get it, they put you on a waiting list for housing. At that time, you pay again. And you wait until the remaining members are not digging up your apartment at the expense of membership fees of new members. Then you move in. And you all pay until the full amount of the apartment is not given. It's very similar to a pyramid scheme. But there are happy people. The main thing is not to be in the last ranks because your money is pouring out. All my acquaintances have already taken their money from such companies.
And the prices there are low and the interest is ridiculous and the cases of buying an apartment on the specified conditions is also ridiculously small. I have had several clients from these cooperatives, from Social Initiative to build together. The answer is categorical - I do not recommend them. Good luck
In my opinion mortgages are more reliable and reasonable. Cooperatives do not inspire confidence especially after the cases of housing initiative.
if you really want an apartment, you don't need a pyramid scheme-is the scam lower than inflation? ha ha.free cheese only in a mousetrap
I looked into co-ops. It's cheaper than a mortgage, but not by much. There are a lot of pitfalls there. And if it takes a long time to build a house, the fees you pay to the cooperative will be quite large. If you are from St. Petersburg, I can send you the e-mail address of the cooperative. Read the information