One of the many factors you must consider when buying a home is how well it will retain its value. No one wants to spend six-seven figures and see a property’s value decline. Gated estates are largely insulated from the forces that can drive down a home or a neighborhood’s value. As a well-defined extensive development, a gated estate is not susceptible to having homes torn down for commercial buildings or road projects. When this happens on the fringe of a regular neighborhood, the remaining residents can see a quality-of-life reduction. Additionally, the standards within luxury communities ensure that all homes are maintained.
You won’t have to worry about an unsightly property impacting your market value. All of the factors that make gated communities desirable add to the property values of all residents. The appeal of the community will inspire new buyers to purchase or build homes there. If you’re a prospective homebuyer, you may find yourself debating the appeal of life in a gated estate. Like so many questions you’re likely facing, this one is complicated and hinges a good deal on personal preference – but we can help you get started by defining what this type of community actually is.
When evaluating different aspects of gated communities, it’s important to remember that what seems like an advantage to one person could seem like a disadvantage to another. Gated estates can also vary widely from one to the next. That said, there are a few key traits that are commonly associated with gated estates. Let’s take a closer look at each one.
Belonging to a gated community can come with a heavy price tag. For one thing, homes in gated estates can come with a higher asking price; a 2016 study from the American Real Estate Society found that the average home in a gated estate sold for $30,000 more than a comparable home in a non-gated one. Residents will also be required to make regular payments for the upkeep of the community. As we mentioned, all gated estates are governed by HOAs, which means that residents can expect their community-related fees to start with a typical monthly, annual, or quarterly HOA fee. While the variation in these fees may depend on several factors, the most straightforward predictors of HOA fees are generally community size and amenities provided; and as gated estates include the additional amenity of substantial security measures (after all, the gate, security guards, and key cards all have to be paid for), their HOA fees will be higher than those of comparable non-gated communities. It’s also worth noting that additional expenses may be incurred by following many of the community regulations we’ve already discussed, particularly those related to home appearance, structure, and quality controls.
