Community housing associations seem to be on the rise across the country and while we’ve mainly studied the Southern California market, there seem to be more and more examples of these communities emerging.
Of course, this type of housing is much different to that what we have been used to for centuries. This means that a lot of people approach the industry blind and if you are considering buying into one of these developments, here are some issues that you must consider before parting with your cash.
The Management Company
It might be a reasonably young industry, but it’s still one where various companies have built reputations. Naturally, there are both good and bad ones, with an example of the former being found over here. It goes without saying that the importance of finding one that has a proud history cannot be underestimated; after all, this firm is going to be responsible for your general living conditions for a potential lifetime.
The Current State
If you’re moving into a community that has been established for years, taking a look around at the current surroundings should give you every indication on what to expect in the future. If things are clearly derelict and being left to rot, it’s a great indication to run a mile.
The Bottom Line
And finally, those dreaded management fees naturally have to be taken into account. In some cases its not been unknown for buyers to completely change their mind after reading about the fees, so this is something that can impact your decision tremendously. At the same time, if the fees do appear to be too cheap, it might be advisable to question if it’s sustainable for the company to manage the community on such a low budget.