Buying a condo is often a smart investment strategy, even with the market starting to level out. Owning a condo is a great way to start growing your estate portfolio, whether you’re planning to rent it out or live in it yourself. Once you’ve made the decision to invest in a condo the next thing to consider is which floor you’d like to have a condo on. There are a number of things to think about when deciding whether to buy something on the lower levels or ground floor, or to choose a higher unit.
Things to consider when choosing what floor
When it comes to choosing which floor you want your condo to be located on, there are a number of things to consider, including:
Security and privacy
Depending where your building is located, choosing a higher floor might come with a higher sense of security and privacy. Lower or ground floor units are sometimes more susceptible to break ins, as well as being closer to the street where people can easily see in through your windows.
One of the biggest differences you’ll find on the different floors is the view it offers. Naturally, higher floors will typically have nicer views, so you’ll want to take this into consideration when buying a condo. If you’re planning to rent it out or flip it, the views can add value to the space, allowing you to raise your rental or selling price.
Possible rental returns
Knowing what you plan to do with the property will help you gauge the possible returns on your investment, especially when it comes to renting it out. While higher floors can usually command a higher rent, this also means you’ll be looking at a higher purchase price. Lower floors on the other hand can often be acquired for a lower purchase price, which can translate into lower interest fees and higher overall return on investment.
Buying a condo on a higher floor can reduce exposure to street level noise and the sounds from other guests as they move around common hallways. Choosing your neighbourhood wisely and figuring out what side of the building your unit is on can help you figure out where noise might come from, and if it’s worth trying to minimize.
Energy consumption costs
The higher you go in the building, the more your energy costs can increase. Warm air rises so higher floors will have to run their air conditioner for longer during the summer, and the water delivery system could draw more power for units located on higher floors.
In most condo buildings, lower floors are sold for a lower price compared to higher floors. While there are positives to being on a higher floor that may command a larger investment, knowing this will help you decide whether you’re ready for the difference.
Access to the unit
You’ll want to consider who will be living in the unit in order to decide whether accessing it might be a hassle or not. Having to wait for an elevator can be a hinderance for some, but may be necessary if living in units closer to the top. For some it may be more preferrable to live closer to the main floor so they can take the stairs instead.
If you suspect your condo may house a family with children or elderly parents, you’ll want to keep this in mind when choosing which floor to buy a condo on. Lower floors may be more convenient when it comes to moving kids through the building and helping seniors cope with mobility issues or height fears. Alternatively, higher floors may have a lower likelihood of housing children, so might be more ideal for some potential renters.
When buying a preconstruction condo, you’ll want to consider your timeline before committing. Buying lower in the building usually means your unit will be done sooner than higher ones will be. Builders usually work from the bottom up, so higher units may take longer to complete. This can make a difference for when you are able to get renters in to your unit and start recouping some of your investment.
The best floor choice is up to you
When it comes down to it, there is no set line on which floor is the best one to buy a condo on. You should take all of these factors into consideration in order to find the best investment options for your portfolio.