For generations, buying a home was considered the cornerstone of the American dream. However, in recent years, people have been debating whether buying a home is better than renting.
Adheesh Sharma, vice president of financial solutions at Fidelity says, “a lot of financially savvy people are starting to question whether it’s economically rational to buy a starter home or to wait and buy that dream house where they’ll live 30 years.”
On average, a home in a community association sells between 5% and 6% higher than an equivalent home that does not enjoy planned community designation.
In essence, a homeowners association is a governmental type of entity that manages and keeps the peace in your neighborhood. The entire purpose of an HOA is to maintain a higher quality of life. Many empty nesters and first time home buyers love Association life because it frees them of many responsibilities.
If you purchase a home within an HOA or COA membership is mandatory. Along with the membership, is the collection of regular fees. In return for your payments, an HOA may provide certain amenities, such as a clubhouse, private park, or community pool. Some HOAs handle basic maintenance, landscaping, snow plowing and other repairs for common elements.
Most HOA rules are well intended and are designed to mitigate problems before they occur. Rules are implemented for many reasons, such as the appearance and safety of the community. In many cases, especially regarding safety, rules are designed to benefit all.
• Pretty Neighborhoods – Because the rules are strict about your home’s exterior appearance, the result is a nicer looking neighborhood. Properties in an HOA tend to be better cared for thereby increasing property values.
• Less Neighbor vs Neighbor Disputes – Any time you have an argument about a dog barking all night long, your exact property line, or loud parties, the HOA will address it. If you have a management company, that’s even better. They will intervene on your behalf to protect your privacy.
• Much Higher Quality of Living–The rules are written and enforced for the purpose of raising the quality of living. Neighborhoods will be more peaceful, safe, and beautiful because of the rules, which increases your quality of life.
• Shared Cost of Community Amenities – The fees collected each month is used to build and maintain common community areas such as parks, pools, and even recreational facilities. And don’t forget detention ponds and lakes. The expenditures are included in your monthly payment saving you the costs of joining a gym or swim club. Entertaining is easier with a community clubhouse as well.
• Basic Maintenance Included – Often, basic maintenance such as landscaping, and snow removal will be performed. In some instances, exterior maintenance like roof replacement, painting, pest control, and cleaning are included. Since the costs are shared by all, the per door cost of what is included is drastically less than if you would have had paid for it yourself.
Rinaldo Acri CEO of Acri Community Realty says, “Purchasing within an HOA is an affordable benefit for first-time home buyers, retirees, and low to moderate-income families.”
Many people are searching for a less complicated life, leaving more time to enjoy themselves. Acri Realty feels that is where buying in an HOA or COA can make all the difference. Shared amenities like swimming pools and recreational centers offer a solution that most folks cannot afford on their own. Perhaps more importantly, associations also offer a sense of community, an important contribution in our increasingly transient society.