The Missing Costs and Benefits in Private Housing Projects

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The Missing costs and benefits:
Almost, private projects concentrate on monetary profits, they rarely think of social ones. Monetary profits are not good measures of net social benefits. Here, it is important to understand that future costs and benefits are the base for the future decisions; which are based on a clear appraisal.
Social Values and Shadow Prices:
The purpose of social-benefit analysis is to use a hypothetical rather than predicted price when evaluating project. A shadow price is an important characteristic of social-benefit analysis; here, the discount rate, which arrives at the present social value (PSV) is different from the market rate of interest. The shadow prices reflect better real costs and benefits to society than do actual prices; some consider them UN real, because they do not reflect current prices, but they match more closely to realities.

Types of costs that are to be held by users
Cooperative schemes deal with different types of costs. Some of them are:
Land Cost:
Cost of land is the main cost considered by the people; the cost forced them to buy land which is little far away from the city. However , it is not surprising that no feasibility report is prepared; The committee decided to buy the land based upon prices , which means that there was no chance for any social analysis.
Construction and Services Costs:
The construction cost is the future responsibility of members; but, they have to bear other costs before construction: They have to pave roads, sewage costs, electricity, water pipes and water tanks.

Maintenance Cost:
Maintenance cost does not exist at this stage, since most of the buildings do not exist yet. Whereas, in the long run maintaining cost shall include preservation of finishes a...

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...al benefits for every private project.

Works Cited

Little, I. M. D. and Mirrlees, J, A, (1977), Project Appraisal and Planning for Developing Countries, (1977 ), Heiniman Educational Books, London, P.3
Stone, P. A. ( 1975 ), Building Design Evaluation, Cost-in-use, ESFN, SPON, London, p.10
Little, I. M. D. and Mirrlees, J, Project Appraisal and Planning for Developing Countries, p.11
Ibid. p.32
Ibid. p.36
6 Stone, P. A. ( 1975 ), Building Design Evaluation, Cost-in-use, ESFN, SPON, London, p.71
7 Ibid. P.72
Little, I. M. D. and Mirrlees, J, Project Appraisal and Planning for Developing Countries, p.129
Ibid. P.133FF
Russel. J. ( 1974 ) Economic Aspects of Public Housing, Volume 8, Sage Library of Social Research, London, P.70
Ibid. P.143
Ibid. Passim
Stone, P. A. ( 1975 ), Building Design Evaluation, Cost-in-use, ESFN, SPON, London, p.142

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