Investing in a Gated Community: How It Is A Safe Bet
People always have an exceptional attraction to living in a gated community. Whether it is social or financial, there are many reasons why people want to invest in a gated community.
Gated community homes always show a strong possibility of maintaining value and being appreciated over time. In accordance with a study conducted by the American Real Estate Society, we have found that community homes tend to sell for around $30,000 or more than non-gated ones.
Those who recognize how a pleasant atmosphere increases the pleasures of living are drawn to invest in gated community homes. We will further talk about the inherent qualities of living in a gated community so that you will know whether it is a safe investment or not.
Top 5 Reasons Why Investing in Gated Community Apartments or Homes is a Winning Bet
The increased market value results from the interaction of geographic location, neighborhood amenities, and social possibilities. And a gated community can ensure all these. Therefore, homes in such communities barely lose their value.
Let’s investigate the following 5 reasons for investing in a gated community home or apartment…
1) Safety and Security
Security is a major concern for home buyers, which they can find in a gated community. The name itself clearly implies that a gated community is protected by walls. Gated communities are superior to ordinary houses not only for the walls but also for providing round-the-clock security. With limited access and walls, people can't wander around the house to check on you.
2) Sense of Community
Gated neighborhoods foster a greater sense of community and provide you with a place to live where you may enjoy isolation anytime you want. When you live in a gated community you have more chances of sharing your experience and thoughts with your neighbors by,
- Jogging with them
- Playing golf with them
- Attending various events
- Swimming with them in the pool
- Exercising with them in the gym
Most of the time, people want to buy a gated community apartment or home to enjoy a greater number of amenities. These communities stand out from homes in ordinary places for the amenities. You can spend quality time with your friends and family when you can participate in various activities where you live in. It is like having all the recreational mediums under the same umbrella.
The following amenities can be often seen in private communities,
- Fitness centers
- Swimming pools
- Golf courses
- Tennis courts
- Fine dining
- Event venues
- Walking or bicycling trails
- Private ponds or lakes
4) Better Environment for Living
Apart from the above benefits, you can enjoy a great living environment, which can be the main concern of investing in a home for many. While living in a gated community, you will be isolated from the hustle and bustle of the city. Additionally, most communities are clean for being close to nature or waterways. Remember, no matter how long you live in a gated community, the environment isn't going to change anytime soon. Consequently, this will help increase the value of your home in the future.
5) Investment Value
Houses or apartments in a gated community are often sold like hotcakes in the real estate market. In most areas, potential customers prefer gated community apartments more than stand-alone apartments. We assume, the above factors together lead to such concerns among buyers. In addition, people opt for a gated community apartment for exceptional designs and better specifications.
Recent price increases and drops in well-known gated communities over the years
Gated communities tend to be more expensive than non-gated communities. However, the investment is worth it. Factors like location, market trends, economic conditions, and amenities can influence the price increase and drop for gated communities.
Below, we will take a look at some gated communities where home prices have seen a significant increase in recent years,
- Beverly Park, California: This is a gated community in Los Angeles that is the home to many celebrities. There has been a significant increase in home prices in this community over the years. For instance, the median home price in 2020 was $16.5 million, which was a 23% increase from the previous year.
- Fisher Island, Florida: This is an exclusive gated island community in Miami. It is renowned for its luxurious amenities and home prices are steadily increasing. In 2020, the median home price in Fisher Island was approximately $3.8 million. Compared to the home price in 2019, this was a 15% increase.
- The Hamptons, New York: It is actually a collection of communities situated in the East End of Long Island. It is also a popular destination for wealthy individuals who are seeking a second home. After a 6% increase, the typical home price stands at about $1.2 million in 2020.
On the contrary, some gated communities have seen price drops in recent years. Here are a few examples,
- Olympia, Florida: In the center of Wellington lies a sizable community called Olympia. It offers 32 elegant, yet cozy, floor plans that particularly accommodate the wide range of lifestyles of new homebuyers. Upon reviewing the property listings in this magnificent community, it appears that most of the prices have either remained steady or decreased. The prices of a relatively small number of homes have climbed.
- The Summit, California: This is another gated community in Beverly Hills. It has seen a decline in home prices to a slowdown in the luxury real estate market due to Covid-19. The median home price in this community stands at $8.5 million. This may still be a lot compared to homes in other communities. However, the price actually fell by 20% from the previous year.
To wrap up, we would say investing in a gated community house or apartment is always profitable. And if you have read this far, then you know why. Aside from the above reasons, there are plenty of other reasons to buy a home in a gated community.
Then again, some gated communities can offer exclusive facilities that may not be available in other communities. On top of that, prices of gated community houses or apartments do not decrease easily, which is one of the most significant investment factors.