Look towards retirement with anticipation, not trepidation. Because co-ops have cost advantages and are tailored to fit your desires, you may find that you can afford more than you expected.

Cooperative living is one of the most financially advantageous age 55+ options available today. Specific financial benefits include:

Tax Benefits: Enjoy all of the same benefits as owning a single family home.

• Mortgage interest and real estate taxes are deductable from your federal and Oregon State income taxes in a housing cooperative. Each resident’s pro-rata portion of interest and tax expenses is passed-through. This includes any interest associated with your own home's share purchase, as well as your proportionate share of co-op incurred interest.
• No capital gains tax when you resell your share – just like the benefit available to you when you sell a single family home.
   

Member Owned and Controlled: Ownership empowers and secures your future.

• Provide for a secure future as a shareholder in the cooperative by working with your fellow residents to diligently plan, operate, and oversee operations. No outside owner can raise your rent or monthly fee. In fact, because a co-op is operated without the need to create profit, your monthly fee will be as low as possible. Specifically, monthly occupancy charges are equal to only the actual costs of operating and maintaining the property + robust reserves for future repairs + the co-op’s mortgage payment (if applicable). All expenses are member controlled and verifiable.
• Reap the benefits of shared costs and collective bargaining. Purchasing items such as cleaning services, in home care or personal fitness classes can be done in a pooled manner by the cooperative members effectively and priced down. Furthermore, overall operating and maintenance expenses are shared by the membership, making the overall cost of living more affordable than a single-family home.
   

Elimination of Profit Centers: Removing for-profit ownership saves you money.

• Unlike all other senior housing options, co-ops are built and owned by their members. Each member is essentially their own investor; instead of building your own single family home, you build your own multifamily home in a collective fashion. This co-op process minimizes the need for outside construction investors and their required rates of return. In addition to removing the need for up-front development profit, ongoing outside ownership return on investment is eliminated because the owner is you. Unlike independent for-rent or continuing care retirement communities, co-ops have no need to be an income producing property.

Predictable Investment: Mitigate the risk created by cyclical real estate markets.

• Because all members buy their share at the same time (at the start of construction), your exposure to risk is limited. Co-ops have high pre-sale requirements; therefore, the risk inherent in being an early buyer (as exists in condos) is negligible. In addition, no one buys in until the budget is set, agreed upon and costs and completion are guaranteed by the developer.
• Because HUD guidelines typically limit annual appreciation levels to approximately 2% per year, the co-op share values typically become undervalued relative to the market. This, in turn, ensures a buyer will be there when you look to sell as your co-op unit will be more affordable than an equivalent unit. As a result, co-ops present a unique way to minimize the impacts of real estate market cycles.
   

Monetize and Preserve Equity: A unique aspect not available through other options.

• By selling your home and using some of your equity to buy your co-op shares, you create financial flexibility. The sum total equity accumulated in your home allows you to move into a new home while keeping a portion liquid for investment annuity or daily living purposes.