You've probably driven through one of those neighborhoods: beautiful homes with manicured lawns, and in the midst of the neighborhood lies a home with overgrown grass and a broken down car in the driveway. Your reaction? Negative, of course. And most likely it makes you question the neighborhood as a whole.
You're probably wondering if the neighborhood is as nice as it looks otherwise, and why is someone living there who wouldn't care for their home? Are many of the homes being leased or possibly in arrears on their mortgage payment? Is it a transitory neighborhood? Will you fit in with the neighbors?
No matter what, that one home instantly devalues the other homes because it raises questions and uncertainty. The bottom line is that your neighbors increase your investment risk.
With a nice Townhome community, you're automatically protected from this risk to your investment.
Why's that?
- These communities have Home Owners Associations (HOA) that have rules and regulations that homeowners must abide by, and
- The HOA in nicer communities will maintain all common grounds and facilities.
The end result is that the grass is always mowed, the grounds groomed, the swimming pool and other amenities maintained and clean, and you won't have ugly things like broken down cars or tool sheds in your neighbors' yards.
When you're ready to sell your townhome, any prospective buyer will have less perceived risk because of the HOA, and you'll automatically have more power in the negotiation process. This will help you get the highest price possible for your property, and probably help it sell faster than a similar property that isn't in a neighborhood with an HOA.