“Housing project that is self-initiated and self-developed by a group of people who will also be the future inhabitants”
What are Building Groups ?
A ‘Building Group’ is a group of people who have joined their financial resources and efforts to build an apartment building according to their desire and at a reasonable price. They can engage a project manager to take care of the organisation. Meanwhile an architect translates their individual desires into a building design and when the construction is completed, the members of the group become owners of their respective apartments.
“What if individual home buyers could pool their money together to finance, purchase and construct a building they were going to inhabit? What if you and I could be real estate developers? This is the idea behind Building Groups”
In what way is this type of housing different from developer-built apartments ?
Ordinary apartments currently available on the market are mostly built by property developers and their plans are determined primarily by the market demand. Moreover, the profit margin of the real estate developer is integrated to the buying costs of the apartments so that it is always higher than the actual cost of construction.
Instead in a ‘Building Group’ project, you are the developer yourself. The building could also be made customizable and suitable for you and the group. By bypassing the commercial real-estate developer and their profit margins, the overall cost of owning an apartment is therefore lower.
There is no “typical model” – every project differs in its financing, social make-up, the wishes and desires of the group, and the project’s resulting architectural and urban qualities.
How will I find a group?
It is possible to form a ‘Building Group’ with a group of people / friends wanting to build their houses
A Building Group can be initiated by
- a small group of individuals who own a plot of land already or who have decided to find and purchase a plot together;
- architects who take the initiative and start searching for and connecting people who would like to build a home in this way;
Why should I opt for this kind of building when it might be easier to buy something ready-made from a developer?
* Less overall cost
Leaving out the real estate developer saves a considerable amount of money and allows you to have an apartment at an attractive price. The price of a Building Group apartment is usually up to 25% lower than the price of a comparable new home built by a property developer because it doesn’t include the profit margin of the developer.
* Build an apartment to your wishes
The plan of most apartments available on the market, as well as the materials used for their construction, are determined primarily by the average market demand, which does not necessarily have to suit you.
In a Building Group project, you invest in an individual solution which you create together with an architect according to your own preferences. That means you do not buy a prototype project, but you define you own standards based on your lifestyle and your values.
* Build in a desirable location
As a larger group of investors, you are able to afford a building site in better areas in the city that would otherwise remain out of your reach. This is something new homes currently built in the suburbs cannot offer. By combining the financial resources, you as a group could afford a high-quality building which would generally be expensive if built separately.
* The members of the Building Group will be your future neighbours
You start the project with other individuals who have the same goal – to find an agreement, join resources and live together in a good customised apartment building. You will get to know each other very well during the whole planning and construction process. In the planning, all the members of the group participate equally in communicating and contributing to the final design of the apartment building. In the end,you and every member of the group is going to move into an apartment that they helped build together.