Living in a community scheme can be extremely rewarding and beneficial with more and more people choosing this as an option, but not all residential communities are the same and not all community schemes are in a financially healthy position, well maintained and properly managed by the service providers who are appointed by scheme executives.

With the number of community schemes having grown exponentially over the past five years, choosing which community scheme one wants to live into is often the most important part of the process of purchasing a property. Owners looking to move into a residential community scheme will often pay more for a property that is in a well-run, effectively managed and maintained estate than buying in another estate that doesn’t match these criteria despite them preferring a property in that estate.

Below are some criteria that scheme executives and residents in estates should take cognisance of in ensuring that their community scheme is the scheme of choice for prospective buyers and thus protecting and increasing the asset value of the properties in the scheme.

1. Maintenance of Gatehouse / Common Property Garden areas / Roadways

The community scheme gatehouse and landscaped surrounds should be welcoming and well maintained, with everything looking good and well laid out. The surfaces of the internal roadway system that provides access to the buildings must be properly looked after and free from damage. The stormwater drainage system should have no visible residual debris, and the pavements must be clean, neat, and tidy with well-maintained landscaping and trees providing a good ambiance to the scheme in general. These are all priority areas, as they provide a great first impression to prospective buyers.

2. Maintenance of the Building Improvements and Common Property Buildings.

Nothing puts off purchasers more than unsightly poorly maintained buildings or houses with flaking or faded damaged areas on the external facades and roof areas and unmaintained wood and steel work. The redecoration of all common property buildings including the gatehouse and utility areas, boundary walls and any clubhouses on the property and the state of any pool in the recreational area will all be used as indicators that a community scheme is well run and financially viable.

3. Scheme Executives Management style and Implementation of Scheme Rules

This is often visually apparent in the way in which vehicles utilise the parking areas, washing is left hanging on patio walls and balustrades, noise levels and how the building and landscaping areas are being utilised by residents.

Prospective owners often ask the sales agent and the seller questions about the resolution of issues and complaints when reported, the time taken to deal with such and if the rules for the scheme are enforced by the scheme executives. They may also ask about the channels that are available for the resolution of any disputes that may arise between owners and how such issues may be or have been resolved.

How the scheme is run and managed will have an impact on the value of one’s home in that scheme and may well be a determining factor in being able to achieve the desired selling price.

4. Security and the Wellbeing of the Residents living in the Scheme

This is often a key area of focus by prospective buyers when considering which scheme to buy into. Again, first impressions are particularly important, especially in how the guarding company presents itself at the gatehouse in terms of dress and politeness, as well as the type of access control system utilised by the scheme.

Good security is a vital component of any scheme and a scheme that has put the security of its residents as priority in terms of proper up to date monitoring systems using the latest technology available, has a positive impact on the value of homes in a scheme.

5. Infrastructure provided in the scheme and long-term costs for the upkeep of such.

Prospective purchasers may look at the current infrastructure in a scheme to establish of there will be future building development still to be completed and  the impact of such, and if there is maintenance and upgrades that will have to take place into the future to ensure such infrastructure remains useable and in good working order.

6. What Amenities are provided for use by the Residents.

Although prospective buyers may be aware that the better the type and variety of amenities provided and that are available for use by the residents have an impact on the monthly levy contribution being paid, they may often see these of great value to their lifestyle and reason for choosing to live in the scheme.

7. The Financial position of the scheme and the approved budget

The financial position of the estate is often a crucial determining factor for savvy prospective buyers. Owners should ensure that the AGMs have been held and that the financial statements for the scheme have they been audited correctly and are up to date. The budget of income and expenses of the scheme approved by owners at the AGM is also a crucial indicator of the Prospective purchaser wants to be sure that they are not buying into a scheme with current and/or future liabilities such as unresolved issues with a municipality or with large levy debtors. They want to be sure that the scheme has built up adequate reserve and is able to meet future maintenance expenses without placing a financial burden on the current owners. The financial position of the scheme will have a significant impact on the selling price achieved for your property and on the monthly costs paid by way of levies both presently and into the future.

Whitfields will provide support in whatever way it can, in assisting scheme executives and residents residing in the community schemes that we manage, regarding compliance with legislation governing their community scheme.