September Newsletter
Topics
Next Information Session
Community Dinners
LETS
Commentary on SMSF and Build To Rent.
---------------------------------------------------------------------------------
Next Information Session
On Saturday October 14th at 5pm we will have our next information session at the house at 3 Young Street Queanbeyan 2620. Come hear from the creators of the Sun Villages model and have your questions answered. After the presentation we will have a community dinner prepared by the Wednesdaynight crew. Also before the dinner in the daytime, beginning around 1pm, there will be guided tours of the neighborhood and a bike ride along the river to downtown Queanbeyan. Bring your own bike. For more information contact David on 0481217634
Community Dinners
The format of our weekly community dinners is taking shape. For the first 15-30 minutes we have a general meet and greet while food is being heated up or prepared. Then we sit down for a meal, often preceded by a moment’s silence and centering on our shared vision. Then we eat. The food has been really delicious- and homemade with some fine ingredients. It’s mostly vegetarian and vegan though not exclusively. After the meal we have a round table discussion. There has also been a bit of creative self-expression such as guitar, song and poetry. Then there is clean up and goodbyes.
Peter and I have started rehearsing some music and percussion for our planned summer time musical mud stomp performance. This is a process that was used to build our little backyard wood fired "Rocket Stove". Ada is gathering input from each person to determine if they would like to participate in the LETS trading system we are forming.
----------------------------------------------
LETS (Local Energy Trading System)
We signed up to start a Queanbeyan LETS group and have been sent the relevant information. For more info talk to Ada at adaazzam@hotmail.com
----------------------
Commentary on “Build to Rent” news.
Recently there’s been a new buzz phrase that has hit all the media. Its called “Build to Rent” which I was asked to comment on. I referenced this article on Build To Rent in our newsletter several months ago. It seems that the major media outlets are all agreeing with each other that Build to Rent is all good. This article entitled “Build to rent could be the missing piece in the affordable housing puzzle“ and this one entitled “Build to Rent a Key for Australian Housing Affordability” are examples of the media espousing this so-called solution which is “already underway in the USA, UK and other places”. But I’m here to question whether “Build To Rent” is really all good for everyone. As the name implies, the Build-To-Rent model, creates apartment blocks that will house residents who will remain as renters renting forever. There is no ownership at the end of any tunnel in the BTR model. That’s not good for all those that actually want to increase home ownership in Australia. Build to Rent looks more like the government giving special incentives to create more renters, than creating more home ownership in Australia. From all the hype in the media, Build to Rent looks like Big Government colluding with Big Corporate Developers and Big Corporate Media to give up on the idea of home ownership -the lynchpin of the middle class- and accept the American reality of a middle class that is disappearing and looking more and more like a lower class each day. Maybe its just a pure coincidence, but the media is now has more articles like this one suggesting that its better to rent than own. I wonder if the owners of these newspaper would be willing to give away all their houses and agree to always be a renter from now on. I doubt it. But for a growing number of Americans now, the dream of owning a home has become non existent, not because people don't want to own a home, but because it is getting harder and harder to get the finance to do so. The situation in America is quite pronounced because it is often cheaper to pay a mortgage than to pay rent, so the owner always wins over the renter. There are very few if any benefits to being a renter in America. And so, the privileged minority who are able to access the financing are buying up the all the homes and creating a whole new breed of permanent renters in the process. Is this really the path that Australia is comfortable heading down? In Europe, big corporate developers, their financiers and the government made big deals after WW2, to solve their housing crisis at the time, and now home ownership there is among the lowest in the world. Home ownership has been one of the cornerstones of the Australian way of life and we should be protecting that. The Property Council of Australia, is working on a report that is evaluating the feasibility of Build to Rent that will be published soon. From the article on their website, it seems like they have already decided it’s a good idea. And I’m sure it is good for some. But who exactly stands to gain the most? And are we all really ready to move that quickly towards giving up on home ownership? Are we ready to let our government get behind the idea of intentionally creating more renters, rather than finding a way (like Sun Villages) to create more owners? "Build To Rent" will increase and normalise non-ownership, and the media seems to be coincidentally doing their part to usher it in by making it seem cool and hip. “You dont need to own” they say. And the the subtext is: “Leave that to the big boys who know what they are doing. I’m not sure I should be trying to associate Sun Villages with this “Build to Rent” idea, even by way of comparison, but if I was forced to make a comparison in as few words as possible, then first of all “Build to Rent” would need to be appropriately renamed “Big Corporates Build to Rent” and then in comparison, Sun Villages would be “People Build to Rent to Own.” A fundamental difference between Sun Villages and other property development models including Build to Rent, is that the Sun Villages was not conceived within the parameters of the mainstream property development parameters, but by a group of conscientious young mothers, (now grandmothers) who were simply looking for ways to make life easier for themselves and others. They were unconstrained by corporate goals and objectives. They simply wanted to create better ways to raise their families and they also had the elderly in mind. And then they found some sympathetic professionals and experts who decided to support them and go against the grain of their industry in order to bring those dreams into reality and make it happen. The Sun Villages model was created despite the status quo ethos of property development, not because of it. The result is something that works primarily for residents and also for investors looking for something ethical to invest in and receive a good return. And so Sun Villages is a resident-driven form of property development that gives itself permission to act in the best interest of the residents by using independent financing. Sun Villages is therefore opening up the cosy old monopoly between developers and the banks. Isn’t that more like what we want? Don't we want to create more home owners? Don't we want to create more competition for the Big Corporate Developers rather than make it easier for them to get more market share? Don't we want more transparency in the world of property development? Of course we do. Sun Villages opens up the whole process of real estate development -from concept to design to build- to anyone that wants to learn more. It educates lay persons on how property development works and spreads the knowledge and brings more diverse people to the property development space. Sun Villages enables anyone with $10,000 to start owning equity in the land and buildings that they will occupy from day one. It allows them to continue increasing their ownership position at their own pace, up to where it offsets their rent or even creates a cash positive scenario. It allows them to get in easily like a renter, and increase their equity over time, like an owner. In order for this Sun Villages model to work better, it needs Government to loosen the red tape in place, and issue a limited AFSL for smaller “Build to Rent to Own” developers. This would allow smaller resident driven developers to raise their construction funds at lower costs, creating savings that they can pass onto their syndicate members (themselves and their co-residents and co-investors). When the time comes I’ll be sending out press releases to the media that will be aimed at helping them see things from our point of view. I’m looking forward this, and while I'm wondering with concern about whether politics plays a part in what gets published, I’m excited to see how it goes.
Topics
Next Information Session
Community Dinners
LETS
Commentary on SMSF and Build To Rent.
---------------------------------------------------------------------------------
Next Information Session
On Saturday October 14th at 5pm we will have our next information session at the house at 3 Young Street Queanbeyan 2620. Come hear from the creators of the Sun Villages model and have your questions answered. After the presentation we will have a community dinner prepared by the Wednesdaynight crew. Also before the dinner in the daytime, beginning around 1pm, there will be guided tours of the neighborhood and a bike ride along the river to downtown Queanbeyan. Bring your own bike. For more information contact David on 0481217634
Community Dinners
The format of our weekly community dinners is taking shape. For the first 15-30 minutes we have a general meet and greet while food is being heated up or prepared. Then we sit down for a meal, often preceded by a moment’s silence and centering on our shared vision. Then we eat. The food has been really delicious- and homemade with some fine ingredients. It’s mostly vegetarian and vegan though not exclusively. After the meal we have a round table discussion. There has also been a bit of creative self-expression such as guitar, song and poetry. Then there is clean up and goodbyes.
Peter and I have started rehearsing some music and percussion for our planned summer time musical mud stomp performance. This is a process that was used to build our little backyard wood fired "Rocket Stove". Ada is gathering input from each person to determine if they would like to participate in the LETS trading system we are forming.
----------------------------------------------
LETS (Local Energy Trading System)
We signed up to start a Queanbeyan LETS group and have been sent the relevant information. For more info talk to Ada at adaazzam@hotmail.com
----------------------
Commentary on “Build to Rent” news.
Recently there’s been a new buzz phrase that has hit all the media. Its called “Build to Rent” which I was asked to comment on. I referenced this article on Build To Rent in our newsletter several months ago. It seems that the major media outlets are all agreeing with each other that Build to Rent is all good. This article entitled “Build to rent could be the missing piece in the affordable housing puzzle“ and this one entitled “Build to Rent a Key for Australian Housing Affordability” are examples of the media espousing this so-called solution which is “already underway in the USA, UK and other places”. But I’m here to question whether “Build To Rent” is really all good for everyone. As the name implies, the Build-To-Rent model, creates apartment blocks that will house residents who will remain as renters renting forever. There is no ownership at the end of any tunnel in the BTR model. That’s not good for all those that actually want to increase home ownership in Australia. Build to Rent looks more like the government giving special incentives to create more renters, than creating more home ownership in Australia. From all the hype in the media, Build to Rent looks like Big Government colluding with Big Corporate Developers and Big Corporate Media to give up on the idea of home ownership -the lynchpin of the middle class- and accept the American reality of a middle class that is disappearing and looking more and more like a lower class each day. Maybe its just a pure coincidence, but the media is now has more articles like this one suggesting that its better to rent than own. I wonder if the owners of these newspaper would be willing to give away all their houses and agree to always be a renter from now on. I doubt it. But for a growing number of Americans now, the dream of owning a home has become non existent, not because people don't want to own a home, but because it is getting harder and harder to get the finance to do so. The situation in America is quite pronounced because it is often cheaper to pay a mortgage than to pay rent, so the owner always wins over the renter. There are very few if any benefits to being a renter in America. And so, the privileged minority who are able to access the financing are buying up the all the homes and creating a whole new breed of permanent renters in the process. Is this really the path that Australia is comfortable heading down? In Europe, big corporate developers, their financiers and the government made big deals after WW2, to solve their housing crisis at the time, and now home ownership there is among the lowest in the world. Home ownership has been one of the cornerstones of the Australian way of life and we should be protecting that. The Property Council of Australia, is working on a report that is evaluating the feasibility of Build to Rent that will be published soon. From the article on their website, it seems like they have already decided it’s a good idea. And I’m sure it is good for some. But who exactly stands to gain the most? And are we all really ready to move that quickly towards giving up on home ownership? Are we ready to let our government get behind the idea of intentionally creating more renters, rather than finding a way (like Sun Villages) to create more owners? "Build To Rent" will increase and normalise non-ownership, and the media seems to be coincidentally doing their part to usher it in by making it seem cool and hip. “You dont need to own” they say. And the the subtext is: “Leave that to the big boys who know what they are doing. I’m not sure I should be trying to associate Sun Villages with this “Build to Rent” idea, even by way of comparison, but if I was forced to make a comparison in as few words as possible, then first of all “Build to Rent” would need to be appropriately renamed “Big Corporates Build to Rent” and then in comparison, Sun Villages would be “People Build to Rent to Own.” A fundamental difference between Sun Villages and other property development models including Build to Rent, is that the Sun Villages was not conceived within the parameters of the mainstream property development parameters, but by a group of conscientious young mothers, (now grandmothers) who were simply looking for ways to make life easier for themselves and others. They were unconstrained by corporate goals and objectives. They simply wanted to create better ways to raise their families and they also had the elderly in mind. And then they found some sympathetic professionals and experts who decided to support them and go against the grain of their industry in order to bring those dreams into reality and make it happen. The Sun Villages model was created despite the status quo ethos of property development, not because of it. The result is something that works primarily for residents and also for investors looking for something ethical to invest in and receive a good return. And so Sun Villages is a resident-driven form of property development that gives itself permission to act in the best interest of the residents by using independent financing. Sun Villages is therefore opening up the cosy old monopoly between developers and the banks. Isn’t that more like what we want? Don't we want to create more home owners? Don't we want to create more competition for the Big Corporate Developers rather than make it easier for them to get more market share? Don't we want more transparency in the world of property development? Of course we do. Sun Villages opens up the whole process of real estate development -from concept to design to build- to anyone that wants to learn more. It educates lay persons on how property development works and spreads the knowledge and brings more diverse people to the property development space. Sun Villages enables anyone with $10,000 to start owning equity in the land and buildings that they will occupy from day one. It allows them to continue increasing their ownership position at their own pace, up to where it offsets their rent or even creates a cash positive scenario. It allows them to get in easily like a renter, and increase their equity over time, like an owner. In order for this Sun Villages model to work better, it needs Government to loosen the red tape in place, and issue a limited AFSL for smaller “Build to Rent to Own” developers. This would allow smaller resident driven developers to raise their construction funds at lower costs, creating savings that they can pass onto their syndicate members (themselves and their co-residents and co-investors). When the time comes I’ll be sending out press releases to the media that will be aimed at helping them see things from our point of view. I’m looking forward this, and while I'm wondering with concern about whether politics plays a part in what gets published, I’m excited to see how it goes.