I have primarily invested in houses or condos with a view (golf course, water, etc). I came across a possible deal for a condo in a high rise. It is about 25 stories tall with nice amenities. My question focuses on this. When looking at comps, there are a few units available for sale (and recently sold) in the building. Many have the same floorplan so the differences come down to view and updates.
Having never invested in a high rise before, how much premium is placed on the floor you are on? Is higher "better"? Assuming you are taking an elevator regardless. Let's say you are comparing the 10th floor to the 20th floor. Same floorplan, same view. Should you evaluate one more than the other?
I've always seen that people have to pay more rent for a higher apartment vs. a lower one in the same building, so it seems likely to carry over to condos as well.
That said, you could also look at intra-comps within other buildings as analogues. My guess is you'll see a view premium that increases as you go higher.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing