The document discusses funding regeneration through a system called Capital Partnership that uses prepay credits. It proposes that Capital Partnership is a new approach that can finance development and fund long-term use of assets through creating rental pools. Rental pools would establish affordable long-term rents and sell prepay credits returnable for rent, raising funds for development while providing income for investors. This system could help address 21st century problems by allowing different generations to directly invest in and benefit from assets like housing through exchange of rental credits, care, and intergenerational transfers of value.
3. Resilience
Resilience - the enduring power of a body or bodies for
transformation, renewal and recovery through the flux of
interactions and flow of events
Resource Resilience – Natural Grid
Financial Resilience – Open Capital
4. Financial Resilience – Open Capital
Prepay – credit returnable in payment for value
Protocol – consensual interactive 'two way' agreement
6. Tax Prepay
Tax Prepay – credit returnable in payment of taxes
Tax Return – 'stock' part of tally stick returned to Treasury
Rate of Return - rate over time at which stock is returnable
for cancellation
eg Prepay £8 for £10 tax - £2 profit 25% pa rate of return
- not fixed - depends on existence & quantity of flow
7. Rental Prepay Credits
Credit returnable in payment for £1.00 of Rent
10,000 Credits sold for £8,000 give a 25%
absolute return (£2k profit / £8k investment)
If Rent is £10k pa Rate of Return is 25% pa
If Rent is £5k pa Rate of Return is 12.5% pa
If Rent is £2k pa Rate of Return is 5% pa etc etc
39. Rental Credits – as rental levels rise or
fall rate of return increases or falls
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40. A Rental Pool will have a 'common bond' –
geographic or otherwise
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41. Occupiers are natural buyers and acquire
rental credits by paying rent in advance
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42. Occupiers who care for their property may
receive 'Sweat Equity' rental credits
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43. 21st Century Problem
Retiring Generation
-'long' of Property and 'short' of Care for themselves and
their property
- poor returns on deposits (loans to banks)
Working Generation – burdened with bank property debt
Young Generation – long of Care but short of Property
44. 21st Century Resolution
Retiring Generation
- exchange rental credits for care
- invests directly 'Peer to Asset' in rental credits
Working Generation – direct investment in rental credits
replaces bank property debt
Young Generation – care exchanged for rental credits