The Price is an Important Factor that Makes Investors Go After a Real Estate Project
The price of a condo is the deciding factor for many people regardless of the different features that are more important. You may call them materialistic or opportunistic as they try to seize the opportunity to make the most of a deal. This is usually done because they think that if they can successfully make a deal and then sell off the real estate for a profit, this can be a great way to do business. But not every time this ploy works.
Let me offer you an example that you can understand your point easily.
The price of real estate is one of the factors that drive the attraction of the people towards it. Even if a person buys a place for accommodation and does not have any intention to sell it in the near future, the first thing in his mind would be the price. A high price denotes that a place falls into the posh/luxurious category, and that’s one reason why it is sought after by many people. The price of such a place keeps on increasing for this very reason.
The Price that Can Make your Head Turn
If you think that you have heard or seen everything related to real estate price, you may not have researched enough. For example, do you know that a penthouse in Manhattan, New York City went for over 98 million dollars! I mean, you can buy a huge mansion with that amount, with the covered area over 20 times that of the penthouse. But when there is demand, the prices can go up very sharply.
Similarly, in Toronto, too, there are some affluent neighborhoods like Etobicoke and places near the hills or right at the waterfront where the prices will be deemed insane by many people. But that’s mainly because the majority of the people can’t afford a piece of real estate in that area. Even a sample flat or Apartment that can cost you around $200,000 in any other area and cost you over half a million!
If you think that if it is just the price factor, then you are wrong because the location in an affluent neighborhood can also make a place deem luxurious and precious. In cases like this, the price may not be that high, or it may be very exorbitant. For example, for the same size of a Condo in any other place in Toronto, a condo located in 50 Yorkville Ave can be very high. This is due to the prestige associated with such neighborhoods or projects.
The Power of Price
The price of a real estate can also depend upon several other factors like political and economic stability. The current COVID-19 epidemic has put a dent on the lucrative Toronto real estate market. The resurgence of the virus with the second wave touted to be even more dangerous than the first one; the market is in for a real turmoil for some time to come. That’s why the investors in the real estate next to be wary in which direction the market will move during the next few months.
I want to describe here another factor that I briefly mentioned above. It is about the look and feel of a luxurious penthouse or mansion which is grand. The building material and exterior finishing is also another factor that can make a difference in the price of a condo, for example. People were able to find a house in old Toronto made up of bricks and looked dazzling until a few years ago, but now no such place is left.
The price can make or break a real estate project or condo. For example, if for a new project, the owner of a new condo will ask for a price of over 1 million dollars, and if the price of nearby projects is not more than 0.5 million, then virtually no one will buy the expensive condo. This is one reason why the price of any real estate project, condos or even huge mansions must be decided after thorough research.
This simple step can save big real estate projects from going down the drain. A little care is needed when trying to sell any place.
Over to you
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