Membership Housing

LOL, in return you get the "right" to rent.

 

Their big hook seems to be that you get that $150K "back" at the end, so it's almost as if it were free! But, of course, as Ragu noted, if you sell the condo (with assumed appreciation), you're getting your $150K back, plus some.

I can't fathom what could convince someone to do this.

 

The only thing I could think of that would make someone do this is if it were on an extremely desirable block in NYC, where you couldn't come close to affording it otherwise, thus the $150K refundable deposit for the "right to rent" would make some sense. But Bennington, VT? Pass.

 

There are 29 of the membership units at either $115,000 or $150,000 buy-in, which comes out to under $4 million. They're also going to utilize New Market Tax Credits to build it. People elsewhere can't fathom why they're doing it this way, plus no one understands it.

 

Right, if this was Trump's new building, someone will plunk down $300,000 to reserve their spot on the 26th floor. But who is doing that in Bennington?

 

Exactly. The Personal Seat License comparison really does seem to fit, except this might be even worse.

 

Couldn't you buy in, sub-lease the unit for 10 years to make money every month, then cash out after 10 years?

 

If it's so confusing that nobody understands it, move on.

 

I have to figure it out soon to explain it.

 

I was curious because it sounds like such an awesomely awful idea, and here's what I found. These are the "benefits" you get from this:

http://putnamblock.com/membership-housing/benefits/

Kind of sounds like living on a third-rate cruise ship.

 

What is the term before you can get your money back? What if you die? Do they just keep the money?