Expert: Diann Tonnesen - 2/28/2007

Question
Hello, I am planning on purchasing a pre-construction condo to live in myself and hold for around 3-5 years. In the development I am considering, I have first choice of any unit in the building.

I was just wondering if you could provide some tips on what you think would make the best resale unit. Ie. is it best to go with the cheapest (but worst) units in the development in hopes that they will appreciate faster, or go with corner units/ units with veiw however more expensive.

Also any preferable design tips in floorplans would be helpfull. Such as, is it better to get a 2 bedroom unit with the two bedrooms together(sharing a wall), or seperated?

Any help you could provide would be much appreciated.

Answer
Hi Ben,

How wonderful to have first choice of any unit in the building! That is a true first phase opportunity and usually nets the investor the best profit margin.

It is hard to answer the question of whether to buy the least expensive unit or a corner unit with a view without knowing the difference in price between the two, what average costs are in the area and who the target buyers are. In a low priced development it is usually better to buy the least expensive unit. In an upscale development I would go with the least expensive of the corner view units, especially as you are going to be living in it yourself.

It becomes a bit more difficult if this is a mid priced development. If the pricing is relative between the units for what they offer, you can probably do either the cheapest unit overall or the cheapest corner unit with a view.

As far as design elements, unless you think this will be a family development with kids, a split bedroom floor plan is always preferable. And in smaller square footages, open great room type floor plans are much more preferable than more formal ones.

Make sure that the living area can accommodate furniture groupings adequately! That seems to be one of the biggest downfalls in condo design. It helps if there are furnished models, so you can get a good idea of how everything will fit, but if you are buying off of a floor plan, try taking the room measurements to a furniture store and have them help you pick out couches, chairs, tables and TVs.

Also take a look at the distance from the unit to the amenities of the complex - pools, fitness centers, mail boxes, etc. Try to get one that is closer to these amenities as that is always a good selling feature. Distance to parking is also important.

A word on upgrades: if this is a relatively expensive development for the area, you must add quality counters and cabinetry. Buyers in upscale properties expect to have good finishes and it is hard to sell an expensive property with little or no upgraded features. If this mid level property a few upgrades are in order, but if this is an inexpensive property you can get by with the basics.

Hope that helps, as it is hard to get really specific without more exact details. Of course, the key to any good real estate purchase is location, location, location. Good luck in your purchase!