Various specially designed community centered fully enclosed gated areas are deteriorating due to the subprime lending results. Why is this taking place and how could it be any worse than new housing tracts with foreclosures on every streets? Well, sometimes it is not worse, and bad. In other places it is very serious and far even worse. How is this going on in these prized and desired neighborhoods? rivercove residences floor plan
What has happened is that during these gated communities there may be up to twelve homes for sale with the very same floor plan. In the event the gated community only has 4-5 different floor plans and 600 to 3500 homes inside those gates, they buyers will low-ball until one of the homes with the floor plan they desire chooses to sell. In several gated communities in areas such as Sacramento, Southerly Florida, Riverside County LOS ANGELES, Phoenix and Texas that we studied, the complete HOA was concerned with community break.
What do I imply by community collapse, well we noted less than desirable gate guards, no gate guards, graffiti, damaged sprinklers, empty residences; real estate foreclosures, walk-aways and seasonal residents, with run-down yards. We all witnessed club houses in a state of downfall and homes not really selling, those that do sell sold for conjecture and for a lot less than they should have.
Obviously, this is a source and demand issue. As well as the bank owned properties, well they are not considering putting more money into these units, when they are ready to struck the auctioning block. Gated Communities in crisis!