Assessing Condo Value: What to Look For

Condo value is an important consideration when buying a condominium unit. This type of property requires a big investment, and you want to make sure that it will continue to have good financial value in the years to come. It is true that price is an important factor in buying a unit, but it should not be the only thing that you should consider. Here are some of the things that can affect the present value and future saleability of the condo you are interested in.

1. Location

Location is crucial for all types of properties. You need to ensure that the area where the condominium is situated has easy access to different modes of transport, schools, offices and commercial establishments. The present and future condo value is higher if the unit is within the center of a bustling city or district. As a rule of thumb, a good location will help raise the value of your condominium, while a poor location or an unsafe surrounding will surely bring down the appraised value of your investment.

Aside from the location of the building, the position of the unit is important. You would want a unit that has a good view. A condo facing the city skyline, a lake or a seascape is definitely a good choice. End or corner units are also preferable because they usually have more windows.

2. Amenities or Pedigree

Other important considerations when buying a condo are the amenities. An exclusive and well-maintained garden, a lap pool or a well-equipped gym can add value to the property. High-end customers and investors look for and are willing to pay a premium for luxury condos with valet parking, Jacuzzis and housekeeping services.

If you cannot afford a luxury condo unit, you can opt for one that used to be owned by a prominent personality or celebrity. A special history behind a condominium unit can help maintain or even raise its condo value in the future.

3. Developer

Many people do not really consider the reputation of the developer that built the condominium building. However, seasoned investors actually consider the background of the property developer as an essential factor when putting money on condo units. This is especially true if you plan to sell or flip your unit in the near future. Investors trust only developers that have a reputation for making safe, beautiful and strategically located condominiums. A new and relatively unknown developer may be prone to substandard building practices.

4. Timing

The timing of buying or selling a condo unit can also affect its value. When there is a glut in the number of houses and condo properties being sold in the market, condominium values are negatively affected. This is a good thing if you are a buyer, but just make sure that you consider all the other factors that affect the prices of condominiums so that there will be no doubt that the condo value of the unit you plan to buy will rebound when the property market recovers.

blog comments powered by Disqus