Should you invest in the cheapest unit you could find even if it’s located on a low floor and has no view? Or… should you splurge and invest in the higher floor unit or the Penthouse? Toronto Realtor Yossi Kaplan explains the pros and cons of investing in high – vs – low floor condos!
High Floor vs. Low Floor Investing
The question of investing in high floors – for views and prestige – come up often and I was recently asked this question by one of my YouTube viewers. The common belief within some is that high floors” are the best”. However, some believe the exact opposite – buy the lowest floor to save on funds and get a better price.
Pay More Now and Get More Later?
When you buy the Penthouse, with views, you get a long-lasting asset that is likely to retain it’s value and likely to appreciate – more with the years. Penthouses are rare, and usually offer high ceilings and better finishes than the units below them. But… they tend to be more expensive, and the upfront investment needs be larger. from my experience, in the long run – Penthouses do very well, because they are rare and hard to find. In the short term, lower priced units (which low level units are, relatively), may do better, in percentages (but not in total dollars).
Short Term vs. Long Term?
Before investing – call me for advise – think about how long you’re looking to keep the unit, and how you’d use it. WHen you’re buying a flip, you’d typically want to pay less and get a condo that is easy to sell. When you’re looking at a condo you may live in yourself, or perhaps buy for your kids, you want to ensure the liveability of that condo is as high as it can be.
Penthouses are not like any other condos. They are unique, rare and offer long-term value. Cheaper, low floor units are easier to buy and sell, but the total profit on the cheaper ones will be less than profit on a larger Penthouse. I hope it helps!
Leave your questions in the comments below or contact me if you’re thinking of buying or selling.