It’s a common belief that condominiums don’t go up in value over time as much as houses. This can prove true under many circumstances; however, it’s also possible for your condo unit to gain value.
Certain factors will influence how much its value will rise in the long run. Read on to find out which ones.
Off-Plan Acquisition
Usually, you’ll end up with more cash in your pockets when you buy a condo that is yet to be built because the developer is actively trying to attract buyers to finance their project. Within a year, therefore, your property’s value may in fact increase by a few thousand dollars.
The Location
Purchasing a unit in a highly sought-after area constitutes a reliable predictor of future success. Look for a condo in an affluent, quiet family neighbourhood, for example, or a centrally located building, close to schools, grocery stores, pharmacies and other strategic services.
Choosing a location that isn’t very desirable right now, but that will be in a few months or years, is also a good idea. Upcoming nearby development projects to keep an eye out for include a future commuter train station, a new bridge, a shopping mall under construction or a developing residential neighbourhood comprising green spaces.
Up-to-Date Materials
A modern condo in good condition will fetch a higher price. There are occasions when carrying out a few renovations before putting the property up for sale can prove quite profitable, and at other times, not so much. Ask your broker for advice!
The Price per Square Foot
You can gain a general idea of how much you can expect your condo to sell for by comparing your unit’s price per square metre with that of other condos currently on the market. But you must compare apples with apples! Only look at properties analogous to your own.
The Number of Rooms
The more rooms, the greater the unit will appeal to most buyers. It can sometimes be worthwhile to close an open-concept space to create a bedroom to increase the condo’s value. Make sure it contains a window, however.
The Building’s Condition
Your unit isn’t the only one that must look its best to appreciate in value: so must the condo building in which it’s located. Is the cleaning service satisfactory? Are the walls repainted when damaged? Are the common areas’ components shabby or outdated?
In short, if you maintain your condo properly and regularly upgrade it, you’ll be giving yourself every chance of increasing its value. Of course, the price initially paid as well as its location may muddy the waters. To get an accurate picture of the situation, contact a real estate broker who can conduct a proper formal evaluation.