What is Sweat Equity?
Homeowners invest hundreds of hours of their own labor – “sweat equity” – into building their Habitat house and the houses of others. Sweat equity reduces the monetary cost of the house, increases the personal stake of the family members in their house, and fosters the development of partnerships with other people in the community. The amount and type of sweat equity required of each partner family vary from affiliate to affiliate; 300 to 500 hours per family is common. How Are Partner Families Selected? Families in need of decent shelter apply to local Habitat affiliates. The affiliate’s family selection committee chooses homeowners based on their level of need, their willingness to become partners in the program and their ability to repay the no-interest loan. Every affiliate follows a nondiscriminatory policy of family selection. Neither race nor religion is a factor in choosing the families who receive Habitat houses. If your family, or a family you know, is in need of decent, affo
SWEAT EQUITY refers to the actual hands-on involvement of partner families in the construction of their own homes, other Habitat homes, educational workshops and other Habitat activities. Sweat Equity is an integral part of the Habitat partnership. A total of 350 hours are required, invested by the members of the family who will live in the Habitat house. Sweat Equity is intended to provide – a direct hands-on investment in one’s own house – construction experience to create an understanding of the house, and the basis for successful maintenence and repairs during the time of home ownership.
Sweat equity is the effort made to enhance the value of property by means of making improvements. Generally, the enhancements must be done either by the property owner or by a buyer who is interested in purchasing the property. The idea is to add to the overall desirability of the property in some manner, while still creating a financial advantage for either the owner or the buyer. The advantage of sweat equity for the owner is that the overall value of the property will be enhanced. While sweat equity does not necessarily increase the monetary value of the property, the work accomplished my esthetically enhance the look and thus allow the owner to command a higher sale price. The combination of financial equity and an enhanced appearance can mean extra cash for the owner in the long run. For a buyer, sweat equity may be a means of obtaining a partial credit that can be applied to the final purchase price. Essentially, the sweat equity takes on the form of business compensation. The di
Homeowners invest hundreds of hours of their own labor – “sweat equity” – into building their Habitat house and the houses of others. Sweat equity reduces the monetary cost of the house, increases the personal stake of the family members in their house, and fosters the development of partnerships with other people in the community. The amount and type of sweat equity required of each partner family vary from affiliate to affiliate–300 to 500 hours per family is common.
