New Condo Investment In Toronto
Why do Condo Unit Prices Vary in the Same Building?
If you’ve ever looked at a few different suites in a single condominium, you may have asked yourself why and how condo unit prices vary in the same building. Besides, they’re all basically the same, right? Well, not exactly. Today, I’ll be going over a few reasons why certain units may be a little pricier than others even though they are part of the same condominium. Let’s begin, shall we?
Condo Unit Prices Vary in the Same Building Because of the Floor They’re Located On
Floor location is one of the main factors that contribute to a condo’s price. Generally speaking, the higher up you go, the more your condo will cost; this also means, however, that you will be able to sell or rent it out for more money later on. The reasoning behind this is that you typically get better views, less noise, and more privacy when you are closer to the top of the building. As the National Bank of Canada points out, each apartment is given a percentage of the complex’s overall value, which is why condo unit prices vary in the same building.
What You See is What You Pay and That Causes Condo Unit Prices to Differ
We’ve mentioned that higher floors typically provide the more spectacular and stunning sight-seeing opportunities, adding to their popularity and cost, but what if the condo unit prices vary even if they’re on the same floor? If you just take a look out of the window, you’ll immediately be able to see why. Would you rather overlook a park with big maple trees and a glistening pond or the corner of the parking lot where the garbage bins sit? That’s easy! When a unit offers a better view, you can expect to pay a little more.
Two Condo Unit Prices may Vary because They’re Different Sizes and Layouts
One of the most obvious answers to why condo unit prices vary is because the amount of space and the overall look varies, as well. If you opt for the condo with 1,200 square feet over the one with only 1,000 square feet, then you’ll need to be prepared to pay for that extra room. It’s like buying a bottle of pop; you may be able to get 1 litre for $1, but the 2 litre bottle at $1.50 will have more pop and more value.
Layouts also have a big effect on condo unit prices. The way one kitchen is designed, for example, may allow for more floor or storage space than another, increasing its value, and thus, increasing its price, as well. Be sure to compare not only two condo unit prices, but also their size and layout, and see which one suits both your personal and financial needs the best.
Could Condo Unit Prices be Different because One is a Corner Unit?
We’ve already talked about how a bigger condo will come at a bigger cost, and units located in one of the corners of the building are typically bigger than the rest simply because of how they are situated in the floor plan. Of course, corner units also come with other benefits, such as the possibility of more windows that allow for you to get multi-directional views and decreased noise due to sharing less wall space with neighbours. If you’d like to take advantage of all that a corner unit has to offer, you’ll probably have to cough up a little more money when purchasing.
Whether the Space has been Recently Renovated or not will Affect Condo Unit Prices
If you’re looking at multiple condos in an older building and notice a price difference, it may have to do with how recent a unit’s last renovation was. If a condo has not been updated in a few years, has older appliances, outdated furnishings, and more, it will be listed at a cheaper price than one that got a fresh coat of paint and all new cabinets and floors last year. Condo unit prices are highly reflective of appearance and so a condo that is not as in style as others in the same building will undoubtedly be listed for a lower price. Remember that even if you are planning to rent out your condo, that it will potentially bring in a higher monthly revenue if it looks fresh and new.
If you’re willing to sacrifice looks for the sake of saving money, there’s no harm in getting the cheaper unit. You should ask yourself, however, if you’ll really be happy with a condo stuck in the previous (or an even earlier) decade for the long term. The National Bank of Canada also warns that if the price seems too good to be true in comparison with other units, it could be due to a lack of routine maintenance and buying it could cost you a lot more later on in repairs.
Need More Info on Condo Unit Prices and Which Factors Help to Determine Them?
Then you need to talk to an expert! Feel free to call me at 647-519-5751 or reach out by e-mail at firstname.lastname@example.org. I’m always available to answer any questions you may have, including why condo unit prices may be so drastically different, even though they’re located in the same building. We can figure it out and find the best condo (and the best price) for you together!
If you would like to discuss more about the condo investment or upcoming Toronto new condo opportunities, please book an appointment with Arshad Hussain. A trusted name in Toronto pre-construction real estate.