Hi all. I am looking at buying a new investment property. I have found few a located within gated communities. Apart from the body corporate costs of a gated community are there any negatives in regards to capital growth or rental aspects of it? And also what are the positives. Thanks.
They can be safer but really you just buzz someone until they open the gate and you are in. I've bought things from people in them and as a visitor I hate having to arrange entry, park outside and walk a long way in. Or drive in and try to pick the house out of 100 all the same. I'm guessing there are more upmarket ones but most I've visited have felt cramped, same old, same old, lack parking and feel slummy. Obviously there must be better ones but I've not ever seen one. That might be because people selling on eBay and gumtree sites are not living in the more exclusive gated communities.
Depends where they are. In places where security might be an issue and/or expats want to hang out in a separate community away from locals, it can be a desirable thing. The Y-man
Like the religious compound in Victoria Rd at West Ryde? Alternatively, we could put a fence around Mt Druitt, Frankston and Elizabeth.
No fence needed. The halitosis creates a natural barrier that keeps outsiders away. "23 days without brushing teeth. Another 60 and I beat my PB..yeeha...garlic prawns for midnight snack again!"
Followed by a greasy yeeros with extra garlic sauce and washed down with a few slabs of Tooheys New. I can smell it from here!
Back on topic.... I've owned & lived in a couple of gated communities. Besides the BC costs there can be many rules & regulations to comply with. Some communities have Architectural Review Committees for instance, that are like council inspectors in overdrive. Also, many of the strict rules, that your tenant will need to comply with, may extend to the owner if the tenant does anything to place that is non-compliant. The positives are a "controlled" community with standards that prevent a ghetto neighbour taking root. Some have facilities (pool, gym, golfcourse, clubhouse, bar/restaurants etc) that can be appealing. The additional overheads, restrictive bylaws/regs/community codes of practice & risks of periodic owners contributions for large exspenses within the estate, need to be wayed against the growth/yield prospects.
