When the opportunity occurs to purchase Granville County investment property, one of the crucial decisions you will make is choosing a property in an established neighborhood or a home in a common interest community. There are a lot of different kinds of neighborhoods, some with owner’s associations (commonly known as HOAs), others without. But a master-planned community is quite distinctive from your traditional residential neighborhood, even those that may have an owners association.
To identify whether investing in a planned community is right for you, you must first understand what makes a master-planned community so different, as well as the pros and cons of buying one.
The Master-Planned Community
Probably the main thing you need to know about master-planned communities is that they are less like residential neighborhoods or suburbs and more like little self-contained cities. Several planned communities are significantly huge and include commercial districts, schools, and private recreational amenities. Many planned communities feature a variety of shops and restaurants and walking paths, communal pools, and even golf courses – all located at a convenient distance from the community’s residences.
Advantages of Planned Communities
One of the main advantages of investing in a rental property in a planned community is the location. People purchase in planned communities in considerable part because of how close and accessible everything is. Walking or biking to jobs, shopping centers, and restaurants can be a big draw.
The amenities that numerous planned communities offer are an additional key advantage. Numerous tenants enjoy the feeling of living a lifestyle that includes access to recreational opportunities – primarily if the amenities are only for the use of the residents. These amenities can create possibilities for socializing far more than a regular neighborhood could.
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 doing great elsewhere. Planned communities also tend to offer more security, including gates and security patrols. This can be very appealing for many tenants.
On the contrary, all that upkeep and security comes with very strict rules, which some Granville County property managers and tenants may not be happy with. Property maintenance will be a much higher priority in a planned community than in a more typical residential neighborhood, and you will have less opportunity 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 partaking in any of these jobs as well.
One more potential drawback is that there seems to be 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 problem. Some tenants may not love being around people all the time.
To conclude, 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’s critical to include these extra fees into your calculations before you invest in a planned community.
Lastly, the last judgment to buy in a master-planned community is you. No two situations are alike, and so depending on 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’d want assistance planning your next property investment, consider giving Real Property Management Impact 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 919-439-8989.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.