Finances

Shared incentive ethical property development

Ethical property development. Alternative property development. Property projects focussed on people and planet instead of profit.

Call it what you will, we’d like to see more of it. One of the challenges is how to weave in the practical reality that money is involved, cash is necessary, and people need to get paid.

How do we recognise and respect the commercial and financial practicalities of all parties involved without focusing on the bottom line?

Firstly, we can question the stories we’re told about commercial realities, and the ways that we approach our commerce. Our business-as-usual environment is combative and competitive, not collaborative, and our business models tend to reflect that. Greater transparency around where the money is flowing to is required in order to genuinely collaborate.

Secondly, we’ll need shared incentives that start with a dollar sign. For example: If all parties were involved in the design from the beginning (i.e. builder, architect, engineer, planner, developer, future owner) could they also all share in the financial risks and rewards? Perhaps, for example, set a fixed budget for the project, and share any under-run between everyone? There’s many details to work through here of course, but the fundamental principle that we all aim to reduce cost however we are able to (within our scope of involvement) because we all win financially has to be worth considering.

Finally, this isn’t theory, this is actually happening.

What did you pay for your driveway?

How much is your driveway worth?

What did it cost when you bought it?

How much do you spend to maintain it?

How much more expensive was your renovation bill, because you had to trench up the driveway?

How long did it take to sweep the leaves off last weekend?

How much of your street is there just to get you closer to your driveway, closer to your garage, closer to your home?

But is home really just your house? Or is it also your garden, your property? But is it more than just your property, does is also include your street? Maybe it is wider than the street, it is also the local park, dairy, pub, school and bus stop.

Maybe when you turn into your street, you're home.

Why not put your garage there? Why not put all of your garages there?

Turn your driveway into something useful. Something beautiful. Something fun! Something more in line with what it is worth.

And then maybe do something with your garage.