When the time arrives to acquire Du Pont investment property, one of the critical decisions you can make is picking a property in an established neighborhood or a home in a common interest community. There are numerous different kinds of neighborhoods, some with owner’s associations (commonly known as HOAs), others without. A master-planned community, however, is distinct from your typical residential neighborhood, even those that may have an owners association.
To figure out whether investing in a planned community is right for you, it is necessary first to know what makes a master-planned community so different, as well as the pros and cons of buying one.
The Master-Planned Community
Perhaps the most significant thing to remember about master-planned communities is that they are less like residential neighborhoods or suburbs and more like little self-contained cities. Many planned communities are very vast and are comprised of commercial districts, schools, and private recreational amenities. Many planned communities will have a variety of shops and eating places and walking routes, neighborhood pools, and even golf courses – all located at a convenient distance from the community’s residences.
Advantages of Planned Communities
One of the biggest advantages of investing in a rental property in a planned community is the location. People buy in planned communities in large part due to how close and accessible everything is. Walking or biking to jobs, shopping centers, and restaurants can be a compelling draw.
The amenities that several planned communities offer are another great advantage. Plenty of tenants love the thought of living a lifestyle that includes access to recreational opportunities – primarily if the amenities are only for the use of the residents. Such amenities may give opportunities for socializing far more than a conventional neighborhood could.
Another excellent benefit of a planned community that investors might like is that most are geared toward protecting your property values. In various planned communities, the common areas are well-maintained, and some even provide front yard maintenance for residences. This can help keep your property values high, even if the rental market isn’t working well elsewhere. Planned communities also tend to offer more security, including gates and security patrols. This can be very appealing for many tenants.
Potential Drawbacks
Oppositely, all that upkeep and security comes with very strict rules, which some Du Pont property managers and tenants may dislike. Property maintenance will be a much higher priority in a planned community than in a more typical residential neighborhood, and you don’t have a chance to select landscaping styles, paint colors, and even if and how to decorate the home for holidays. You and your renters may need to get permission before participating in any of these activities as well.
Another potential drawback is that there seems to be less privacy in a planned community. Houses are often built very close together, which can affect relations with neighbors. There is also a high rate of people doing activities outdoors, so crowding is usually an issue. Some tenants may not prefer being around people all the time.
At last, the downside to all the extra upkeep and great amenities you get in a planned community is that it all costs money. Depending on the community, property owners may be expected to pay extra fees that range from several hundred to thousands of dollars each year. Depending on the property you purchase, you may even have an obligation to pay assessments to two or more sub-associations along with the master association. These assessments may also change as the community grows, maintenance becomes more expensive, or as reserve amounts are needed. As an investor, it is a great idea to include these extra fees into your calculations before you buy in a planned community.
Ultimately, the decision to buy in a master-planned community is dependent upon you. No two situations are the same, and so relying upon where you want to buy an investment property and what type of tenant you’d prefer to work with may factor strongly into your decision.
If you need assistance planning your next property investment, consider giving Real Property Management Imagine a call. Our rental market experts can provide market assessments and tools that can make finding and choosing your next investment property easier. You can contact us online or call 360-787-4332.
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