It seems like a good way of keeping investors from buying apartments and only allowing people in who are going to live in them. Better then nothing, but honestly I prefer the way it is done in say Germany. The co-op buys the building and everybody can become a member for a reasonable price. Then you are allowed to rent the apartment from the co-op, which pays the mortgage, utilities and other costs of the building. Anything left over is return to the members, which is meant to be nothing. Thanks to scale and time this means lower rents. Especially when the mortage is paid off. However you do not really built up wealth this way.
The Swedish model is pretty much private apartments, but no option of renting them out at all. That makes in unattractive for investors and speculators.
It seems like a good way of keeping investors from buying apartments and only allowing people in who are going to live in them. Better then nothing, but honestly I prefer the way it is done in say Germany. The co-op buys the building and everybody can become a member for a reasonable price. Then you are allowed to rent the apartment from the co-op, which pays the mortgage, utilities and other costs of the building. Anything left over is return to the members, which is meant to be nothing. Thanks to scale and time this means lower rents. Especially when the mortage is paid off. However you do not really built up wealth this way.
That’s a good thing, not building wealth. Housing is a commodity that everyone needs, it shouldn’t be an investment vehicle.
The Swedish model is pretty much private apartments, but no option of renting them out at all. That makes in unattractive for investors and speculators.