SS132: What is a PUD in Real Estate

SS132: What is a PUD in Real Estate

Welcome to Strategy Saturday; I’m Charles Carillo and today we’re going to be discussing What is a PUD in Real Estate. Planned unit developments or PUDs, have become very popular in real estate. In this episode, Charles discusses what a planned unit development is, and how it differs from an HOA.

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Talking Points:

  • Over the past couple of decades, planned unit developments, or PUDs have become very popular in real estate.
  • A planned unit development is a community of homes that could include; townhouses, condos, or single-family homes. In addition to residential units, some PUDs also have commercial units.
  • When you purchase a property within a planned unit development, it includes ownership of a lot, and common areas are typically owned by a homeowner’s association (HOA). When you purchase within a PUD, you will have to pay homeowner’s association dues. It is common for planned unit developments to have many amenities, usually beyond the scope of most condo associations. These amenities may include; parks, lawn maintenance, gated security, tennis courts, pools, outdoor playgrounds, gyms, clubhouses, golf courses, and possibly walking and biking trails. The HOA will collect fees or dues, usually yearly, quarterly, or monthly for the upkeep of the neighborhood and the amenities.
  • What Is the Difference Between an HOA and a PUD?
    • All PUDs have HOAs, but not all HOAs are part of a PUD.
    • A PUD or a planned unit development, is similar to a small town that is self-contained. It can be set up with both residential and commercial units Typically, the commercial properties will serve the needs of the residents and may include; restaurants, grocery stores, retail stores, offices, etc.
    • An HOA is a Homeowner’s Association, which is a self-governed organization responsible for maintaining the community it encompasses. It usually consists of a board made up of neighbors within that community and provides shared amenities to each homeowner within the association. The HOA keeps the neighborhood looking in great condition; helping to keep property values high.
  • What are the Pros and Cons of Living in a planned unit development?
  • Pros:
    • Land ownership: Homeowners in a PUD, actually own their building and land; rather than the homeowner’s association; which allows for more freedom and use.
    • Private amenities: PUDs typically offer more private amenities and common areas when compared to a typical homeowner’s association.
    • Affordable amenities: Planned unit developments may provide amenities at a lower cost when compared to amenities in other communities or when compared to the cost of purchasing the service retail. For example; your HOA within your planned unit development charges $200 a month; however, it includes; the use and maintenance of several pools, your exterior property landscaping, the use of a gym, etc. That if these services were individually purchased by the homeowner; the cost would exceed the HOA dues.
    • Convenience: Residents of a PUD are able to easily; walk, bike, or drive their golf cart to any of the amenities offered by the PUD.
  • Cons:
    • HOA fees: All residents of a planned unit development must join the HOA and pay their regular dues.
    • Proximity to other houses and neighbors: Homes and neighbors are located much closer together than in more traditional neighborhoods.
    • Restrictive covenants: Planned unit developments have different degrees of restrictive covenants that limit the autonomy of the homeowner. They might include regulations and restrictions on; the appearance of your home, home additions, vehicles, pets, public spaces, and landscaping to name a few.
    • Buying and selling challenges: PUDs create additional obstacles when looking to purchase or sell. If the PUD has multiple properties on the market, prices might be suppressed, and new buyers and tenants usually need to be approved by the HOA before they are able to move in.
  • If you enjoy the idea of living in a small, planned community, that offers many amenities, a planned unit development might be the right choice for you. However, it is important to remember that you are required to join the HOA and pay the regular dues, which can vastly differ from community to community.

Transcript:

Charles:
Welcome to Strategy Saturday; I’m Charles Carillo and today we’re going to be discussing what is a PUD in real estate.

Charles:
Have you always wanted to invest in real estate, but didn’t have the time, didn’t know where to find the deals, couldn’t get the funding and didn’t want tenants calling you. Since 2006, I’ve been buying income producing properties and great locations that provide us with consistent passive income. While we wait for appreciation in the future and take advantage of tax laws while we’re waiting and unlike your financial advisor, we invest alongside our investors in every property we purchase. Check out to investwithharborside.com. If you like the idea of investing real estate, if you like the idea of passive income partner with us at investwithharborside.com, that’s investwithharborside.com.

Charles:
Over the past couple decades, plan unit developments or PUDs have become very popular in real estate.

Charles:
A plan unit development is a community of homes that could include townhouses, condos, or single family homes in addition to residential units. Some PUDs also have commercial units. When you purchase a property within a plan unit development, it includes ownership of a lot and common areas are typically owned by a homeowner’s association. When you purchase within A P O D, you’ll have to pay a homeowner’s association dues, and it’s common for plan unit developments to have many of amenities, usually beyond the scope of most condo associations. And these amenities may include parks, lawn maintenance, gate security, tennis courts, pools, outdoor playgrounds, gyms, clubhouses, golf courses, and possibly walking and biking trails. The HOA will collect fees or dues, usually yearly, quarterly, or monthly for the upkeep of the neighborhood and the amenities. So what is the difference between an HOA and A P U D?

Charles:
Well, all PUDs have HOAs, but not all HOAs are part of a P U D. A P U D or planned unit Development is similar to a small town that is self-contained. It can be set up within a with both residential and commercial units. And typically the commercial properties will serve the needs of residents and may include restaurants, grocery stores, retail stores, offices. And HOA is a homeowners association, which is a self-governed organization responsible for maintaining the community and encompasses. It usually consists of a board made up of neighbors within the community and provides shared amenities to each homeowner within the association. The OA keeps the neighborhood looking in great condition, helping to keep property values high. So what are the pros and cons of living in a planned unit development? Well, the pros are land ownership. Homeowners in a PUD actually own their building and land rather than the homeowner association, which allows for freedom and use private amenities.

Charles:
Pods typically offer more private amenities in common areas when compared to a typical homeowner association. Next is affordable amenities. Planned unit developments may provide amenities at a lower cost when compared to amenities in other communities or when compared to the cost of purchasing the service retail, for example, your HOA within your plan unit development charges you $200 a month. However, it includes the use and maintenance of several pools, your exterior landscaping, the use of a gym, and that is if these services were purchased by the homeowner, the cost would exceed the HOA dues. Convenience resonance of a po d are able to easily walk, bike, or drive their golf cart to any of the amenities offered by the P U d. Now, some of the cons of the PUD would be H HOA fees. All residents of a plan union development must join the H HOA and pay the regular dues proximity to other houses and, and neighbors.

Charles:
Homes and neighbors are located much closer together than in more traditional neighborhoods. There’s restrictive covenants. Planning developments have different degrees of restrictive covenants that limit the autonomy of the homeowner. They might include regulations and restrictions on the appearance of your home, home additions, vehicles, pets, public spaces, and landscaping to name a few buying and selling challenges. Puds create additional obstacles when looking to purchase or sell. If the PUD has multiple properties in the market, prices might be suppressed and new buyers and tenants usually need to be approved by the HOA before they’re able to move in. So if you enjoy the idea of living in a small plan community that offers many amenities, a plan new development might be the right choice for you. However, it is important to remember that you’re required to join the HOA and pay the regular dues that can vastly differ from community, community. So I hope you enjoyed. Please remember to rate, review, subscribe, submit comments and potential show topics at globalinvestorspodcast.com. Look forward to two more episodes next week. See you then.

Announcer:
Nothing in this episode should be considered specific, personal or professional advice. Any investment opportunities mentioned on this podcast are limited to accredited investors. Any investments will only be made with proper disclosure, subscription documentation, and are subject to all applicable laws. Please consult an appropriate tax legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Syndication Superstar, LLC, exclusively.

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