When making a major purchase, you've got to weigh the worth of special perks and bonuses.
For example, in a city like Toronto, some neighbourhoods are more widely-coveted than others, which translates to heftier price tags hanging off the homes in those areas.
But to really feel confident you're making the right decision about whether to pay extra for, well, extra, it's important to know what those extra costs will actually look like.
Responding to the curiosities of would-be waterfront buyers, Strata.ca has determined the exact value of a waterfront view in Toronto.
3 Marine Parade Drive, Unit 1406, $659,900 (Strata.ca)
According to Strata's findings, the city's lakeside views command an 8% premium over average home prices.
To make this discovery, the team analyzed sales prices for 20 pairs of units, north and south facing, over the last 12 months. Strata also looked at 13 buildings along the waterfront, which were primarily located along Queen's Quay and Lakeshore, stretching to the edge of Etobicoke.
Through the study, each pair of analyzed units were "nearly-identical." Once each pair's average sale price was determined, the difference in percentage-value among those averages was calculated.
Based on those findings, here's what an 8% premium looks like when placed alongside a range of property values:
Strata.ca
As for whether or not paying this premium is worth it, Robert Van Rhijn, Broker of Record at Strata.ca, says the answer will change based on an individual's preferences.
“If a view of the water is going to improve your overall quality of life, then why not?" he poses.
"I’ve worked with a lot of buyers who are determined to get that lake view because it keeps them emotionally anchored. It gives them a sense of calm, which is a nice contrast to the chaos that often comes with city life.”
What's more, Van Rhijn notes that there isn't a surplus of waterfront properties. As such, those who would really prioritize a view of the lake may not want to hesitate when such an abode hits the market.
“There’s this overwhelming sense of scarcity. Any developer can erect a condo, for example, on any parking lot in the city. But there’s a finite amount of locations that lend themselves well to a waterfront view.”
While there's something to be said for saving where you can, an argument can also be made for spending your hard-earned dollars on what sparks joy.
And, as we stare down the barrel of the COVID lockdown's one-year anniversary, we can definitely understand why waterfront views would do exactly that.
