{"id":228085,"date":"2018-02-27T18:00:26","date_gmt":"2018-02-27T16:00:26","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=228085"},"modified":"2018-02-27T17:17:09","modified_gmt":"2018-02-27T15:17:09","slug":"how-living-in-a-gated-community-affects-the-value-of-your-house","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/228085\/how-living-in-a-gated-community-affects-the-value-of-your-house\/","title":{"rendered":"How living in a gated community affects the value of your house"},"content":{"rendered":"

Research by data group Lightstone shows how living in a gated community can\u00a0 impact the value of your property compared to buying a house in a more open area.<\/span><\/p>\n

According to Lightstone, there are a number of reasons why individuals choose to purchase properties in boomed off areas over more open ones, ranging from the appeal of community living to higher levels of security.<\/p>\n

One of the biggest considerations is that a boomed suburb may increase the value of your property – but is this really the case, Lightstone asked.<\/p>\n

In 2014 government introduced the Security Access Restrictions Policy which enforced certain restrictions on gated communities. These laws were reviewed and reinforced in 2016.<\/p>\n

“The effect of this legislation (was) a drop-off in sales for boomed properties,” Lightstone said. The group used affluent Sandton suburb, Bryanston, as a case study on boomed communities.<\/p>\n

\"\"<\/a><\/p>\n

When considering the average sale price of a closed suburb and areas with boomed estates against those without gates over a period of five years, Lighstone’s data showed that boomed areas are sold at a higher price, but allows for an equal increase. And when comparing the average price per square meter the numbers fluctuate far more:<\/p>\n

\"\"<\/a><\/p>\n

When looking at the number of bedrooms in boomed vs non-boomed areas, properties with only two bedrooms are sold at a higher price in non-boomed areas; however, homes with five bedrooms increase in average price of up to 109.4%.<\/p>\n

\"\"<\/a><\/p>\n

According to Lightstone, the average age of buyers in both categories are 49 \u2013 51 years, and average number of years occupying a home in a boomed and non-boomed suburbs is 12 and 14 respectively.<\/p>\n

The illustration below highlights whether the average number of years a property is owned is significantly different when the following variables are considered:<\/p>\n