Monday, December 30, 2013

New option for pre-construction condo with huge terraces

There is an interesting choice in the condo market right now. They have suites on the 3rd floor with huge terraces. Usually, large terraces are only accommodated on the penthouse levels. I have prepared a sheet with a comparison on a penthouse suite to the 3rd floor suites. I can also send links to floorplans.
My estimates put terraced suites at less than 5% of the condos available on the market. This makes them of significant value. The suites on the 4th floor are also on the spreadsheet, to show the difference between the 3rd floor (with the terraces) and the 4th floor without.
For instance, a 995 sqft condo with a 400 sqft terrace, sold for $440,000 ($442/sqft) in June 2013, the same unit without the terrace, in the same building sold, on the 9th floor for $427,000 (October 2012) which is $429/sqft.
This isn’t totally accurate, as the additional 5 floors should have a value. A fair estimate would be $3000 a floor, so the adjusted price, if both were on the 4th floor is $412,000 or $414/sqft. This suggests a difference of $26/sqft for a terrace over a comparable same floor unit.
Estimated rent at $2250 per month, currently standard two bedrooms rent at $2000 per month, so this estimate is likely too low, as this building is closing in 2016, 2.5 years away and rents historically rise each year.
Please let me know if you have any further questions/comments or if you are interested in moving forward.

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