Project 5 & 6 – Housing
From before SODC was incorporated, local citizens knew there was a poor supply of good housing for new families moving into the area. There was nothing decent to buy and almost nothing to rent.
That’s a bummer!
SODC members learned that 3 serviced residential lots in the hamlet of Sangudo were for sale by Lac Ste. Anne County.
Working with a local real estate agent, they negotiated good terms with the County and purchased the lots. The intent was to build a home on one lot and sell it. Then use that capital to build another, and so on.
A unique financing method was used whereby members raised capital for the building supplies and any additional trades that were not available from members. This greatly reduced the capital required.
Members provided excavation, soil hauling, construction, plumbing, electrical, etc. These members invoiced for their services at a pre-agreed fee.
The agreement was that when the home was sold, members would be reimbursed for their services first, and the remaining profits would be allocated to member-investors.
What happened?
A beautiful 1360 sq. ft. home was constructed. When it was completed, the Alberta real estate markets had slumped and members were not willing to sell the home at a loss.
The home was rented for several years and then sold at a modest profit.
Many valuable lessons were learned, however, with a bit of a bad taste, members were not willing to replicate the process and the other 2 lots were sold.