Buying a house isn't just about securing a place to call home. For many people, a house is also one of the biggest investments they'll ever make, and the expectation is that the investment will gain value over time.
It's for these reasons that people find HOA properties attractive. HOAs take steps to increase HOA home value. As an HOA homeowner, it's prudent to know the various factors that can influence the value of your property.
Some of the factors, like the location of the HOA, are fairly obvious, but there are other subtle ones you may not know. Read on to learn more about them.
The HOA's Rental Rules
It's not uncommon for HOAs to allow rentals in the community. It's a good thing since as a homeowner, you want to know that you have the option to rent out your property should you decide to relocate.
However, the same rental rules that are serving your interests could be the same ones affecting the value of your property. If the HOA has an open rental policy, meaning everyone can rent out their property, the community will lose its exclusivity and property values could plummet.
The correct approach is to have rental restrictions. Only a limited number of homes should be on rent at any given time, and short-term rentals can be banned.
Location of Your Property in the HOA
Similar-sized properties in an HOA typically go for the same price, but they may not gain or lose value at the same rate. The exact location of your home can influence its value as time goes by.
For example, corner houses tend to be more attractive as they offer more privacy compared to houses in the middle or near the entrance to the community.
Of course, a lot will depend on the design and style of the estate, but it's worthwhile keeping the location factor in mind when shopping for a house.
HOA Leadership
An HOA is led by a board comprised of elected volunteers who serve as directors. This board has many responsibilities, including developing the estate's CC&Rs and managing finances.
The actions of the board can have an effect on property values. If you have a board that's not transparent and doesn't act in the best interest of the community, the quality of service provision can decline. Things like self-dealing, in-fighting kickbacks, and embezzlement of HOA funds will give the community bad press, making it less attractive to buyers.
On the other hand, a competent board that does everything by the book and works toward improving the quality of life in the HOA community can go a long way in making your homes more valuable.
Protect HOA Home Value
Buying a home in a Phoenix HOA is a smart move. HOA living offers many benefits, including property value preservation. As an investor, knowing the things that affect HOA home value will help you make an informed purchase decision.
At PMI Real Estate Services, you can make use of our real estate brokerage services. Our licensed and experienced professionals are ready to help you find an ideal property. Check out our homes for sale in Phoenix, AZ, and get in touch with any inquiries.
