If you are looking for the view of a lifetime, it is generally accepted that the higher up a person is looking to purchase a pre-construction condo, the higher the price will be (especially with an average of $1000/floor premiums). Condo buildings are interesting as each floor is built with similar unit designs (if not the exact same design) with the only substantial difference being the view. It is no secret that any view is more impressive the higher a person is, and this plays heavily into the price that renters/buyers are willing to pay for a beautiful view.
For most buyers, the higher a condo is, the better. Also, the higher you go, the larger the units, sometimes up to three bedrooms or higher. So we say that high floor condos are best for investment purposes and those who like space and a view are more likely to stay happy in high floor units than lower floor units. On the other hand, there are advantages of lower floors such as needing less elevator time (especially if you live on a very high floor), walking distance from your parking or underground carpark or closer to amenities such as grocery stores or shopping malls.
When buying a pre construction condo in Toronto, location and amenities are essential but there is another crucial factor to consider when deciding what type of condo to buy; the floor that it’s on. If you’re looking to make an investment, it’s important that when you buy a pre-construction condo you find out if pets are allowed on each floor at your building.
When purchasing a new condo in Toronto, there is much to consider. The location and quality are obviously top priorities. However, the floor may be an important factor as well. There have been studies performed on various condominiums in the Toronto area to see if there is more to gain from being on a higher floor than just a lovely sight and it was found that there are a few gains to be had when purchasing a high condo. First of all, it is easier to market a higher condo because people often prefer being over more of the city rather than into another building across the street. Of course, there can be big issues with this such as not everyone can afford to pay premiums for higher floors, but once you do find a buyer for your condo for instance for example; it will be for a nicer price than somebody ten floors down though.
For those who wish to purchase a rental property, a condo is a better option than starting with an apartment. A condo can be purchased for less money and the initial investment that will be put into a higher condo will in time pay off due to the cap rate. A capitalization rate is the amount of money that will be generated off of the operating income of the condo based on the current market value. In other words, it is possible to obtain a high cap rate on a property if the estate investment brings about a high return income. Cap rates will increase as you go higher up in floors. So, a higher floor will obtain a higher profit for the investor.”
For pre construction condo buyers, the quality of the view is one of the most important factors affecting their decision to purchase. In some buildings, it will make sense for investors to buy higher floors because they can get a better view or increased floor premiums. It can be profitable for an investor who purchases units in a building where the views are similar on every floor.
A lower-floor condo may be more valuable for investors who wish to make a profit quickly, but those who invest in a higher-floor condo will receive more money over time. So, what is more valuable: buying on the lower floor or investing in a higher-floor condo? The answer is complicated since the value is all in the eye of the beholder: with a lower floor condo, you are likely to see profits sooner, but those looking to invest will receive higher returns with a higher floor condo.