Why do Prospective Homeowners want to purchase a CLT home?

  • No downpayment, which allows moderate income households to become homeowners.
  • Significantly reduced mortgage cost; at least 20%.
  • Residents build equity by paying down the mortgage and receiving a portion of any capital gains.
  • Security of home ownership.
  • “Pay it forward” to next owner, passing on the benefit.

subsequent homeowners will benefit from CLTs

AMI=Area Median Income

benefits for CLT homeowners

Source: Davis & Stokes, Lands in Trust, Homes That Last, 2011

The Australian dream of homeownership provides people the ability to build savings and equity that rentals can never do.  Moderate income households are currently priced out of the house or even unit market in many cities.  The increase in housing prices has far outpaced the gains in wages and income for many years.  CLTs provide an opportunity for people of modest means to attain home ownership, through a shared-equity arrangement with a not-for-profit Community Land Trust.

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