Know The Future Of A Community You Want To Live In

Know The Future Of A Community You Want To Live In

It's not uncommon for numerous real estate investors to buy their initial house in an upscale neighborhood, only to find out later the developer will most likely be building townhomes and smaller houses adjacent to this community. If these property purchasers had been cognizant of these new developments, they would have purchased a house elsewhere, fearing a drop in house value because of the changing character of the neighborhood. Many times a developer will construct a luxury community project first. These homes produce an upscale image for that community making it easier for the builder to market the less expensive homes later. Real estate investors seeking developments with a fine reputation for upscale homes, beautiful landscaping, along with a luxury image will probably be attracted to these communities. However, the original homeowners with their luxurious homes may not be as thrilled with the devaluation of their neighborhood. How can you guard yourself from buying into a luxury neighborhood that could depreciate in equity? Your initial strategy would be to ask the developer what their future phases will be like. Numerous developers have already planned out their future phases before they start construction of phase one. Question the developer to see if they plan to combine any of the phases together. Will there be amenities (pool, tennis courts, along with a recreation room) which will be exclusive for that specific community or will it be shared with other phases? Will there be a gated entrance for the higher end homes or a single community entrance? Will there be various homeowner associations? What borders will be planned to separate the various phases? A second question to ask is if the developer has the option to alter their plans for future phases. Is the developer bound to particular zoning laws, deed restrictions, or the choice of a house owner association? Deed restrictions can dictate the minimum size of lot and home that can be built. As you research a development, it's a good idea to study the deed restrictions. These restrictions are tough to change without a majority vote by all qualified homeowners. Government zoning and regulations offer minimal protection that can be altered over time. Developer guarantees and warranties aren't reliable, particularly if they're only verbal. Don't be misled by hyped up promises and brochures that glamorize how grand a neighborhood will look within the next 5 to 10 years. Too many property investors have been disappointed after depending on these fancy advertising supplies. Know that a developer's plans can change and alter the value of your new house. If you're uncomfortable with the possibility of upcoming modest developments, negotiate a legally binding guarantee and deed restrictions.

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