James Fields, Toronto Realtor, will address the significant question: what is the best condominium unit to invest? To help you make well-informed decisions, James will discuss various crucial factors that must be considered when choosing an ideal investment property. James will delve into the often-overlooked aspects of condo investments, such as understanding the dimensions and layouts, selecting the right floor, determining the intended use, considering bedroom configurations, and assessing additional features like lockers and parking spaces. By examining these essential elements, you will be better equipped to make a successful investment in a condo unit.
Understanding Condominium Unit Measurements:
One crucial aspect of investing in condos is comprehending the different measurements associated with these properties. Unlike traditional homes, condominiums have three primary measurements: usable area, unit boundary, and saleable area. Usable area refers to the interior space for living and utilizing, while unit boundary represents the legal extent of the condo unit. Saleable area, on the other hand, is the square footage used for selling the unit and can differ from the usable area by 6% to 20%. Understanding these measurements is vital to avoid potential financial losses and ensure accurate pricing.
The Significance of Floor Choice:
The floor on which your condominium unit is located can significantly impact its value and potential returns. When considering pre-construction or resale condos as investments, it’s crucial to assess the floor choice based on the intended use. For investment purposes, focusing on math is vital. Particular floors may come with a price premium, but evaluating whether this premium aligns with potential returns is essential. Additionally, understanding renter preferences regarding height is crucial. Striking a balance between convenience, noise levels, and appealing views will attract more rental applications and help select quality tenants, boosting your return on investment (ROI).
Bedroom Configurations for Investment Condos:
The number of bedrooms in your pre-construction or resale condominium unit is significant in its investment potential. While 1+den is the minimum, targeting 2+ bedrooms and bathrooms is recommended for investment condos. Two-bedroom units have consistently been in high demand as they align with renters’ preferences. Moreover, having multiple tenants share the rent responsibility can be beneficial. Two-bedroom and two-bathroom units generally offer the best ROI per square foot and have performed exceptionally well in the resale market. As rental prices increase, the demand for 2 to 3 bedrooms is expected to rise, making these layouts even more valuable to future investors.
Bonus Considerations:
a) Lockers: When considering condos as an investment, it’s essential to assess the ROI potential of lockers. Depending on your strategy, safes may offer additional value and convenience for tenants.
b) Parking: Parking availability and its impact on investment condos can vary based on location. In downtown areas, purchasing parking spaces is often recommended. As parking becomes scarce, the value of these spaces may rise, creating demand and potential appreciation. Furthermore, considering electric vehicle (EV) readiness in parking spaces is advisable, as it aligns with the growing trend towards EV adoption and can attract tenants who prioritize sustainable living.
To make a smart investment in pre-construction or resale condos, it’s crucial to assess various aspects such as unique condo unit measurements, choosing the right floor, determining the ideal number of bedrooms, and appraising additional features like lockers and parking. Incorporating this knowledge into your decision-making process can boost your chances of securing the perfect investment condo unit that meets your objectives and enhances your returns in the ever-changing condominium real estate market. Connect with James Fields, a Toronto realtor specializing in pre-construction condos, to discover the best condominium units for investment purposes.