Everybody knows that a higher floor in a condominium building gives a better view when compared to the lower floors. Anything better comes with a price of course! Is the view worth the extra price you have to pay? Let us see!
In condominium buildings, usually every unit has almost similar designs, and the view you obtain from each unit would be the only significant difference. Have a look at the condo buildings at http://mymirvishgehry.ca to get an idea! The view you get becomes more magnificent as you go higher and this is simply the reason for the increased demand and the price.
According to the experts at www.realtor.com, comparing the value of higher and lower floors and making a decision cannot be made randomly just based on the view. Of course, the view plays the prominent role; but there are other factors to consider as well. So, what are the other considerations? Continue reading, and you will get to know!
Location and amenities The location of the building and the amenities available in the building play significant roles in determining its value. If a high floor condo does not provide the sufficient amenities inside the building, then it is a matter of concern. For example, some high floor condos do not allow pets, and hence they may not be preferable for many. In addition to this, if you have budget constraints as well, then a lower floor condo in a good location would have the same value as a higher floor one with location issues and amenities restriction.
Resale value When you buy any property which involves significant investment, you must definitely consider its resale value. High floor buildings stand ahead in this realm because people prefer beautiful views while choosing their living space. Marketing a high floor combo is easy simply because you can attract customers by projecting the spectacular view it offers. Hence the resale value of high floor condos is usually greater than that of low floor ones.
Cap rate is the operating income you can generate from a property based on its market value. As high floor condos are in greater demand than low floor ones, you can get more rent from high floor condos. Even if your property is used as your home and there is no rental income, you need not worry as the cap rate increases because the market value of your property increases over time. The market value of lower floors would usually never increase at a fast pace compared to upper ones. So, the initial investment and the higher premiums which you pay get covered up over the course of time.
So, what is the verdict? What can be concluded from the above analysis? It’s simple! If you are on a low budget and is looking for immediate profit, then lower floor condos may be the good choice for you. On the other hand, if you have sufficient money to invest and is focusing on long-term benefits, then do not hesitate; go for higher floor ones!