When the instant happens to buy a Framingham investment property, one of the crucial choices you will make is choosing a property in an established neighborhood or a home in a common interest community. There are several different kinds of neighborhoods, some with owner’s associations (commonly known as HOAs), others not. But a master-planned community is clearly different from your ordinary residential neighborhood, even those that may have an owners association.
To discover if investing in a planned community is right for you, it’s necessary first to comprehend what makes a master-planned community so different, as well as the pros and cons of buying one.
The Master-Planned Community
Probably the most significant factor 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 pretty substantial and contain commercial districts, schools, and private recreational amenities. Many planned communities provide a selection of shops and restaurants and walking paths, communal pools, and even country clubs – all located at a convenient distance from the community’s residences.
Advantages of Planned Communities
One of the great advantages of investing in a rental property in a planned community is the location. Consumers purchase in planned communities in substantial part because of how close and accessible everything is. Walking or biking to jobs, shopping centers, and restaurants can be a great appeal.
The amenities that several planned communities offer are an additional major benefit. Most tenants prefer the concept of living a lifestyle that includes access to recreational opportunities – mainly if the amenities are only for the use of the residents. These amenities can give chances for socializing far more than a typical neighborhood might.
Another huge benefit of a planned community that investors might like is that most are geared toward protecting your property values. In many 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 doing well elsewhere. Planned communities also tend to offer more security, including gates and security patrols. This can be very appealing for many tenants.
On the other side, all that upkeep and security comes with very strict rules, which some Framingham 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 chance to choose 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 duties.
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 compromise relations with neighbors. There is also a high rate of people doing activities outdoors, so crowding is often a concern. Some tenants may not like being around people all the time.
In conclusion, 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 vital to include these extra fees into your calculations before you acquire in a planned community.
At last, the decision to buy in a master-planned community is up to you. No two situations are the same, 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 like assistance planning your next property investment, consider giving Real Property Management MetroWest-Worcester a call. Our rental market experts can deliver market assessments and tools that can make finding and choosing your next investment property easier. You can contact us online or call 508-329-6000.
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