The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: missundecided on June 03, 2014, 11:10:46 PM
-
I've volunteered for Habitat for Humanity in the past, but it only recently occurred to me to wonder whether putting in sweat equity for a home of my own would be a good idea or not. In checking out where they're normally built in my city (LA), they're not exactly great neighborhoods, but I'm not exactly renting in a wonderful neighborhood either. The only negative I can think of at the moment is that neither location is very close to my work, but that's just the tip of the iceberg, I'm sure. Is this an idea worth exploring, or should I stay away, in terms of value, financing, etc?
-
My understanding of sweat equity with regard to Habitat is that you basically get a 0% loan and the payments are based on your income level. Even if you do qualify for a unit/house, there are restrictions on resale value. You can't just flip it for a profit you will basically get back what you paid for with minimal capital gains. I have volunteered for them a few time and that's how they explained it to me when I inquired about the terms of getting one.
The intent is really to get low income households a house that they can build equity in, like a forced savings. It is not meant for capital appreciation.
-
The intent is really to get low income households a house that they can build equity in, like a forced savings. It is not meant for capital appreciation.
What mxt said. The folks I used to rub shoulders with who had H4H homes typically were career teachers in childcare settings, and didn't make very much.