We have been hearing a lot about the $25.00 per month increase which the homeowners will incur in 2013. Then, something which isn’t spoken about much, but which is sort of an elephant in the room, is that the shareholders do not pay rent. A couple of shareholders have pointed out that they paid a lump sum of money to buy their shares, something which the homeowners did not choose to do. It’s likely that everyone understands the reason why shareholders do not pay rent.
But there are two other numbers which some of you homeowners may have forgotten about when you are doing the math and thinking about the discrepancy.
The first is that all shareholders now pay property taxes which cost about $1,200 per year. Homeowners pay a much smaller amount for their stickers. The second number is the amount of money which the shareholders would have been gaining through interest and dividends if they had invested their lump sums elsewhere. So that is a cost for them.
There really is no important point here except to put all parts of the money trail on the table for everyone to understand. It’s easy to jumble these things into a worrisome financial fruit salad , but actually it is an apples and oranges situation.
Let’s hope that the Co-op also is open about their finances so that everyone can appreciate the issues. Hopefully, the forthcoming meeting will be helpful in that regard.
Our goal on the Forum is to get the facts, to discuss them, and then try to join together in finding solutions without the noise of misunderstandings.
If you disagree with any of this, let’s hear about it. Comment below.
—Paul Goldfinger, MD. Editor @Tropicanaforum.com