Buying a home is one of the most important decisions we make in life, and more and more
people are looking for options that allow them to access their ideal home without stretchingtheir budget. One alternative that is gaining popularity is buying through a housing
cooperative. But what exactly is a cooperative, and why is it such a great opportunity?
What is a housing cooperative?
A housing cooperative is a group of individuals who come together with the goal of
developing and building their own homes at cost price. This means the future
homeowners are also the project developers. As a result, there’s no traditional developer
profit margin added, making the final price significantly lower.
The cooperative is legally formed and managed by a specialized company that oversees the
entire process: land acquisition, project drafting, licensing, construction, contractor
management, and final handover.
How does the process work?
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Cooperative formation: A group of people come together and legally form the
cooperative. Sometimes a management company has already set it up and is looking
for new members.
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Initial contribution: Members make an initial payment to cover the land purchase
and early project expenses.
Project development: The cooperative and the management company work on
plans, permits, and hiring the construction company.
Stage payments: Members contribute funds throughout the construction period,
usually on a monthly or quarterly basis, depending on progress.
Home delivery: Once the project is complete and occupancy licenses are approved,
the homes are delivered and the property deeds are signed.
Main advantages of buying through a cooperative
1. Lower price
Without a traditional developer, the final cost can be 20% to 30% lower than
standard market prices.
2. Transparency
Members have access to all financial and project decisions. Everything is decided
through general meetings.
3. Involvement in decisions
You can participate in decisions about the layout, materials, finishes, and shared
services (green areas, pool, etc.).
4. Access to a new home
Cooperatives provide brand-new housing with more customization options thanpre-built developments.
5. Easier financing
Since it’s a collective project, cooperatives often have pre-approved financing
options with partner banks, making mortgage access easier for members.
What should you consider before joining?
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Legal and technical advice: It’s essential to work with an experienced and
reputable management firm.
Construction timelines: As it’s a project built from scratch, delivery times may be
longer than buying a completed home.
Financial commitment: Although the price is lower, you need to be prepared to
make regular payments throughout the project.
In summary
Buying a home through a cooperative can be a smart and affordable way to own a
brand-new property while actively participating in its development. With proper management
and guidance, it can be one of the most effective ways to access quality housing.
Interested in our current cooperative projects? Contact our team — we’ll guide you
with no obligation.