When it comes to investing in a pre-construction condo, there are numerous factors to consider, and one of the crucial decisions is selecting the right floor. The floor you choose can significantly impact your return on investment (ROI). In this comprehensive guide, we'll delve into the key factors to consider when deciding between higher and lower floors and how to maximize your condo investment.
Higher vs. Lower Floors: The Eternal Debate
You've probably heard the age-old advice that higher floors are always better. It's not without reason. Higher floors tend to command a premium, offer quieter living spaces, and boast breathtaking views. However, don't dismiss the middle or lower-level units just yet. They can present fantastic investment opportunities, especially if they offer unobstructed views.
Lake View vs. Urban View
The higher vs. lower floor debate isn't one-size-fits-all and can vary from project to project. Take, for example, Aquabella Condos in Toronto, which offers both Lakeside and Urban Collections at varying price points. The Urban Collection starts at $687,000, while the Lakeside Collection begins at $1,124,000. The key is to analyze the specific project, the quality of the view it offers, and what potential renters are willing to pay for a unit in the building.
Assessing the Premiums on Higher Floors
Higher floors often come with a premium price tag. In some cities like Vancouver, these premiums can reach as high as $10,000 per floor, particularly for condos with panoramic ocean views. In Toronto, you might expect to pay between $1,000 to $2,000 per floor.
For instance, consider Max Condos on 81 Mutual St. A 2-bedroom, 610 sq ft. unit on the 6th floor is priced at $417,000, while a suite on the 30th floor costs $447,990 – a $30,000 difference. To determine if this premium is worth it, you'll need to weigh it against potential rental income and the time it takes to recoup the additional cost.
Thinking Short-Term vs. Long-Term
If your goal is a short-term profit, consider the middle floors. Savvy investors often target the "lowest floor that clears." For example, if the condo is adjacent to a 10-story building, units on the 11th or 12th floor could be a wise choice. Over the long term, it might be worthwhile if renters are willing to pay a premium rent, and you plan to hold the property for an extended period.
Elevator Considerations
Living on the top floors of a tall building offers numerous advantages, but one drawback can be long waits for the elevator. Elevator efficiency is critical, and it largely depends on the condo's management. In 2015, Toronto received 2,862 elevator rescue calls, highlighting the importance of a reliable system. Trust a reputable developer known for their commitment to top-of-the-line elevator systems, such as Mizrahi Developments in their 80-storey project, the One Condos.
Safeguarding Your View
If your condo's primary selling point is its view, ensure it remains unobstructed. The last thing you want is a new construction blocking your cityscape vista. Stay informed about neighborhood developments and upcoming projects. If preserving your view is paramount, consider waterfront properties for a more secure investment.
Conclusion
In the realm of pre-construction condo investments, choosing the perfect floor can make or break your ROI. There's no one-size-fits-all answer, as the decision hinges on various factors, including location, view, and premium costs. Analyzing these factors carefully and aligning them with your investment goals is the key to success. When in doubt, consult with experts in the field, like TalkCondo, who provide up-to-date information on current condominium projects to make informed decisions.
Investing in a pre-construction condo is a significant financial decision, and choosing the right floor can impact your returns. By considering factors like view, premium costs, and rental potential, you can make an informed decision that aligns with your investment goals. For the latest information on condominium projects and expert advice, turn to TalkCondo, your trusted source for comprehensive and up-to-date guidance on condo investments.
