Buying a condo is such an important project that you want to make sure that you are investing your money in a property that will appreciate in the long term. This can increase for several reasons, and there are steps you can take to do so. But how can we determine the value of a condo? Here are 9 factors that have an impact.
1. Location, Location, Location!
Location is one of the main aspects that affect the value of your property. A condo located in a desirable area with high demand may sell for a bigger price than a similar one built in a less popular one. Buildings established near amenities such as public transport, schools, shopping malls, parks and restaurants also tend to be more popular and therefore more valuable.
2. Supply and demand
The second crucial element is the real estate market’s fluctuation. If demand for condos is high, prices may rise and if it is low, they may fall. Certain economic factors, such as employment and interest rates, can also have an impact.
3. Condition and quality of construction
Buildings that are certified eco-friendly, LEED or that are simply well maintained with high-end finishes, modern appliances and quality fixtures are more attractive to buyers. Therefore, they can sell for a higher price. Condos that require renovations can be less expensive, however, they can require significant investments to repair and refurbish them.
4. Amenities
Swimming pools, gyms, tennis courts, children’s playgrounds, charging stations for electric cars and well-appointed common areas can influence the value of a co-ownership unit. Potential buyers are often willing to pay more for condominiums that offer exclusive amenities. They can also help reduce maintenance costs by providing community spaces that can be shared by residents.
5. Taxes and fees
“Condo fees, property taxes and insurance can be high in some buildings, which can affect the total cost. Sound and up-to-date management from the co-ownership syndicate as well as a well-stocked contingency fund can have an impact on the value,” according to Élise Beauchesne, President of Solution Condo.
6. Community Investments
Investments in public transit, parks, schools, and shopping can make a community more attractive to potential buyers, which can increase demand and therefore its value. However, it may be possible for this to cause the opposite effect. Take for example the construction of the REM in Montreal or new commercial complexes like the Royalmount which could offer a negative or positive result on the real estate market of their respective sector. We will come back to this subject in a future article.
7. Improvements and renovations
Improvement or repair projects carried out on your home plays an essential role. Renovations such as kitchens, bathrooms and the addition of new finishes can make the property more attractive to potential buyers, thus increasing its value. However, it is important to note that they must be well planned and professionally executed to maximize their impact.
8. Marketing
Marketing is another fundamental element in increasing the value of a condo. If displayed well, it can attract more potential buyers, thus elevating demand for that unit. Strategies include presenting the property’s best with quality photos, adding storage, home staging, and exploit effective channels to reach wider audiences, hence the importance of using a brokerage professional.
9. Policies and regulations
Land use, zoning and planning regulations can affect the construction of new homes. Public initiatives to encourage sustainable development can also play a key role. For example, tax incentives for the installation of solar panels or rainwater harvesting systems can increase the value of a condominium.
You want to know more? Contact me at 514-975-1133 to arrange an appointment. We have the tools to achieve your goals!
