Are Communities with Home Owners Associations a Good Investment?

In a word, Yes. But let me expand upon that.

Home Owners Associations are designed to create a uniform set of standards for residents to abide by and, in exchange, residents will typically enjoy a consistent quality of life through that uniform environment. Residents will pay a monthly, quarterly or annual fee and this fee is used to cover the cost of maintenance of common areas, garbage collection, security and other "common area" expenses, such as water, electricity and in many cases a property manager, like PINDER'S Property Management. It should also include a "savings" component so that the community can hedge against future large capital expenditures, such as road repaving, common area facility renovations, etc. If the Home Owners Associations are managed correctly, the value of your community will be protected and your real estate investment will generally have a higher value than similar properties outside the gates. There are exceptions however, as I will now explain.

If a Home Owners Association or HOA is not managed properly there are some serious implications that an investor can experience. First, if the rules for the aesthetic upkeep of real estate in the community are not adhered to or enforced, then the values of the surrounding properties can be negatively impacted. Who would want to buy a home next to a house that is in need of a complete overhaul!? Second, if a significant number of members of the HOA don't pay their fees or are in severe arrears, the financial health of the community can be put at risk. This can cause the basic needs of the community to be neglected, such as maintenance of common areas and community facilities, but can also turn off prospective investors to purchasing a home in a financially dysfunctional community.

It is important that you choose a Bahamas real estate agent that will point out these important aspects of home ownership to you! Knowing that your Home Owners Association is being properly managed and is in good financial health will ensure that the value of your Bahamas investment will continue to grow!