Grades or Classes of Apartments: What They Mean and How To Choose?
The grade or type of an apartment is often not thought of as matter of serious concern before the decision to purchase a property is made. Is the grade of an apartment important? What is an apartment grade and why should it matter? At the conclusion of this very short write-up, we should have an idea of the different apartment grades and why the grade of an apartment is very important in the decision to buy them or the purchase price we pay for them.
Different Grades of Apartments
The grade of an apartment is the class or category or ratings within which an apartment belongs because of a number of factors such as age, location, facilities, space, design, features, and a couple of other factors. These factors combine together and reflect in the selling price of an apartment.
There are basically three or more categories or classes of apartments. Other experts feel it should be four. In this synopsis, a brief reference and description would be given of four different categories of apartments. Apartments here refer to a multi-family apartment. A Multi-family apartment or multi-dwelling unit is one in which there are separate units owned by different owners but contained in one building or several buildings within one complex. It is also sometimes referred to as condominiums.
Apartments are classified or graded thus:
A GRADE A apartment is typically a luxury apartment. It is new and often less than 15 years old. It is also a very high quality apartment within a premium location with amenities such as elevators, swimming pool, gym, smart tech features and very high end design and high quality finishing that are durable and usually pass the test of time. Such apartments often appreciate in value despite their initial high selling price. GRADE A apartments attract the highest rental prices and have the highest purchase prices. They are the most expensive of all grades.
A GRADE B apartment is lower than a GRADE A apartment. The design is not as trendy as the design of a GRADE A apartment and may be older in appearance or layout. The location is not as good as that of a GRADE A apartment but not as bad as that of a GRADE C apartment. This also applies to the features and amenities available in a GRADE B apartment. Not as premium as those of a GRADE A apartment. The rental prices are lower and the sales prices are also lower compared to a GRADE A apartment.
A GRADE C apartment is lower to a GRADE B apartment. The apartment is older. The design is poor. There are often little or no amenities or features. The location is mediocre with lower rental prices as a result of the poor location or poor finishing or the poor design or even the absence or lack of good amenities. They are also comparatively lower in selling prices.
A GRADE D apartment is even worse than a GRADE C apartment. The apartment is old and has experienced a lot of wears and tears. The rental and purchase prices are the lowest.
How to Compare
Given the above description of the different grades of apartments, it is easy to see that the distinctions are based on location, building design, quality of finishing, available amenities and facilities, building condition, the age and status of maintenance.
It is possible for a GRADE A or GRADE B apartment to be in the same location. The differentiating factors would be the design, features, amenities and the state of the apartments. A GRADE A apartment in the same location as a GRADE B apartment would still be much more expensive than the GRADE B apartment, although they share the same location.
On price comparison and how to compare property prices and how to know you have a good property deal, this article may provide additional information. The grade of an apartment however is an additional reason for price variation.
Why Apartment Grades Matter?
It does matter what grade of apartment you own as an investor or property owner. A GRADE A apartment is obviously the best of apartments to purchase or invest in. The value is more enduring. The rental prices will be top of the range while the sales price will keep appreciating for a longer period of time. The Maintenance cost or cost of ownership over the years will also be lower for a GRADE A apartment.
The advantages of buying a GRADE A apartment far outweighs and surpasses the disadvantages, which is often the price.
After the joy of low prices fades away, the pains of purchasing any of the lower grades of apartments is enduring and is well captured in the very popular quotes of Aldo Gucci, when he stated thus:
“The bitterness of poor quality is remembered
long after the sweetness of low price
has faded from memory.”
Aldo Gucci, 1938
What Should You Do?
The answer is obvious. Make the sacrifices today and buy or invest in a GRADE A apartment. You will not regret it. The entry price will be higher now, but you will keep earning both rental and value appreciation dividends for a long time after you have forgotten about the pain of the higher purchase price. On the other hand, a low grade but cheap apartment would give you much headache and pains for a very long time after the joy of low price has dissipated to thin air.
Call us on 08131350422 or chat with us TODAY to get the very best deals on our GRADE A apartments for sale in Lagos State!