When it comes to purchasing a Steel Creek investment property, one of the most crucial decisions you will have to make is whether to buy a property in an established neighborhood or a home in a common interest community. There are plenty of different kinds of neighborhoods, some with owner’s associations (commonly known as HOAs), others without. But a master-planned community is quite diverse from your regular residential neighborhood, even those that may have an owners association.
To discover whether investing in a planned community is right for you, you must first comprehend what makes a master-planned community so different, as well as the pros and cons of buying one.
The Master-Planned Community
Perhaps the essential thing to remember about master-planned communities is that they are less like residential neighborhoods or suburbs and more like little self-contained cities. Numerous planned communities are relatively huge and contain commercial districts, schools, and private recreational amenities. Many planned communities have a variety of stores and restaurants, walking paths, community pools, and even golf courses – all located at a convenient distance from the community’s residences.
Advantages of Planned Communities
One of the major advantages of investing in a rental property in a planned community is the location. People purchase in planned communities in large part because of how close and accessible everything is. Walking or biking to jobs, shopping centers, and restaurants might be attractive.
The amenities that many planned communities offer are another huge plus. Many tenants like the idea of living a lifestyle that includes access to recreational opportunities – especially if the amenities are only for the use of the residents. Such amenities can create opportunities for socializing far more than a typical neighborhood might.
Another significant benefit of a planned community that investors might like is that most are geared toward protecting your property values. In several planned communities, the common areas are well-maintained, and some even offer front yard maintenance for residences. This can help keep your property values high, even if the rental market isn’t running great elsewhere. Planned communities also tend to offer more security, including gates and security patrols. This can be very appealing for many tenants.
Oppositely, all that upkeep and security comes with very strict rules, which some Steel Creek property managers and tenants may not appreciate. Property maintenance will be a much higher priority in a planned community than in a more typical residential neighborhood, and you will have less freedom 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 actions as well.
Another potential drawback is that there is usually less privacy in a planned community. Houses are often built very close together, which can strain relations with neighbors. There is also a high rate of people doing activities outdoors, so crowding is always a risk. Some tenants may not enjoy being around people all the time.
Finally, 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 critical to include these extra fees into your calculations before you buy in a planned community.
It is ultimately your decision whether or not to purchase in a master-planned community. Since no two circumstances are the same, 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 Charlotte Metro a call. Our rental market experts can supply market assessments and tools that can make finding and choosing your next investment property easier. You can contact us online or call 704-919-1344.
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