Condominiums are now hot cakes because they generate more income than other buildings. So, if you’re thinking of buying one, then it’s a good decision. But before you buy, I’m sure you’d love to know if condos have land value.
Do Condos Have Land Value?
If you own the entire condo structure, it has a land value. But, if you’re buying a condo unit that’s a percentage of the condominium, you will have no control over the land. Buying a condo is a good choice. You will still enjoy its value even if you want to live in it or resell it.
The condominium has land value, but each unit inside the building doesn’t have land value. The reason is that as an individual, when you buy a segment of the condo, you only have control over that unit and not the land on which it stands.
When you buy a condo unit, you automatically become a homeowner. But then, the value is only placed on the building. So, purchasing a condo unit only gives you access to a share of the facilities, but it doesn’t mean you are in control of the land. You only control a small percentage of the main building.
However, although you don’t have control over the land, the price of each condo unit will depend on the total amount of both the land and building cost. Asides from that, if the owner decides to sell the entire condominium building to another corporation, you will no longer have control over the condo unit you bought.
Do Condos Have Good Resale Value?
Naturally, a single house grows in value more than a condo. But even at that, condos have a good resale value. When you invest in a condo, you become a homeowner and automatically increase your chance to generate more income.
Owning a condo building is very economical. The reason is that as the owner, you stand a high chance of gaining more by selling each unit to different individuals. That way, it reduces your cost of expenses. Buying a condo unit is also valuable because you can decide to live in it or rent it out to someone else. Asides from that, you will enjoy comfort and coziness.
Naturally, it isn’t everyone who would love to live in a condo. The reason is that some desire privacy. But then, it is not easy for someone to overlook the benefits of owning a condo. Asides from automatically becoming a homeowner when you purchase a condo, here are other great benefits that help boost a condo’s resale value;
- Adequate facilities that provide maximum comfort.
- Twenty-four hours of security for buyers.
- Great value for money and income generation
- Appreciation in value through renting of units.
- Many condos are in busy areas, making it easy for you to navigate your daily activities.
How Is The Land Value Of A Condo Calculated In Canada?
To calculate the land value of a condo in Canada, real estate agents will determine the price by a square per foot while using the recent price as a basis. For instance, if the condo price is $640 per square foot, the value can rise to $810 per foot.
Asides from using the recent price to calculate the value, real estate agents also use the height, location, and standard to know the worth of a condo. They also determine the value of the condominium by measuring the size – If your condo is spacious, the value will increase.
Another factor agents use to calculate your condo’s worth is the number of facilities the building contains. The reason is that the number of facilities your condo has will affect the maintenance fees.
The affordability of your condo also affects its value. If your condo is too expensive, it will not attract buyers. However, the price of your condo depends on the location. In some places, the condo price is $300 but rises to $600 in some areas.
How Do I Value My Condo For Rent
If you furnish your condo up to standard, it will be easy to value it for rent. If you can maintain it well, it will last for as long as you want. Maintaining your condo well doesn’t only make its beauty valuable, but it will also attract potential buyers to you.
However, certain factors like a leaking bathroom can make your condo lose value. So, to avoid this, here are a few tips you can use to maintain the standard of your condo without breaking the bank;
1. Repair Leakages
A leaking toilet, bathroom, or rooftop can quickly make someone lose interest in your condo. You don’t want your buyers to complain much about your building, So you must inspect well and fix all leakages where necessary.
2. Replace Old Appliances
No one would want to buy a house full of appliances that are no longer functioning. If you want your condo to maintain its resale value, you should repair all spoilt equipment and replace it with new ones where necessary.
3. Lack Of Running Water And Electricity
Some people dislike a place where there is no water and electricity. So, your condo should be of standard with a constant power supply and running water.
- Another mistake condo owners make is that they allow their condos to lose their furnishings beauty. If your condo looks old and worn out, the paintings have all peeled off, and the gate is full of rust, it will not look attractive to buyers. The best thing to do is to renovate to help enhance the condo and give it more resale value.
- Your drainage systems are one of the parts you may hardly notice. Ensure that your drainage system is clear of dirt that can cause disease and blockages that can stop water from flowing.
- Ensure that your security systems are in good condition.
- Install your wires properly to ensure that there is proper lighting. Correctly installed wires help light up your condo and provide extra comfort for your buyers. If the wire installations are incorrect, it can cause a fire outbreak and cause damage.
- Use attractive paint colors because some colors can make your condo look dull.
Owning a condo or renting a unit is a good decision. Asides from offering comfort, it is also a good investment plan. But while buying a condo may be the best decision for some people, it may not be for others.
Nonetheless, if you maintain your condo well, it will not only be a valuable investment of high standard, it will generate more sales. So, for your condo to have value, ensure that you maintain it well.
I am Inemesit Etim and I am honest, reliable, confident, and responsible in my work. I am a highly talented, detail-oriented creative content writer with 3+ years of experience writing helpful content that gives value to readers like you. My articles are a product of intense research, both from personal experiences and from reading through the experiences of others. I love home improvement and I am glad I can help you improve the quality of your home and living experience.