Open Space:
Some people like the large open
space. Young singles that work at home often enjoy having a
large open space. It can be nice to have the space around you
rather then be cramped in a small room while working. Couples,
roommates and families tend to shy away from lofts. A large open
space is not well suited for sharing. The lack of walls and
separate spaces can be a challenge for those who want to do
there own thing without being disturbed. Young couples often
think a loft would be a good idea until they actually live in
one. It can be difficult to study when the other party wants to
watch a movie, etc. For all the same reasons single people often
enjoy the open environment as all the background noise is in
their control and they can multitask, enjoying the whole area at
once.
The Environment (who lives
there, who shouldn't)
Loft condo buildings tend to be a
younger crowd and have a high percentage of rentals. Lofts are
the condos most typically bought when a person is young and sold
when their life progresses. Therefore is you are looking for a
long-term home or as an investment, you should consider the
limited resale appeal. Lofts have a smaller share of interest
then other condos and a younger audience (thus more sensitive to
a market cooling).
The cold sterile environment that
often is the interior of a loft has limited consumer interest.
Typically, young singles think its cool and older people
generally shun them like the plague. Therefore lofts are
sensitive to trends and this can be an issue at resale. To date
the interest and supply has been a pretty steady match. One plus
with loft conversions is the building envelopes are often well
constructed with solid brick, beams and concrete. These
buildings are usually zoned live/work and for all kinds of uses
including chemicals, broadcasting, studio productions, etc.
This can be a big plus for artists, photographers, home
businesses with manufacturing and or warehouse requirements.
Unfortunately, most people that reside in loft buildings are
young "professionals" that think its cool to live in a loft,
then complain about neighbors using the space for purposes its
actually zoned for.
Lofts certainly have their place.
However the 9-5 office workers that often buy them these days
really perplex this author. Why would you want to live in an
industrial building where you neighbor could be a sculptor
(chisels, hammer, etc)? People are drawn to the mystique of the
"artist" live/work loft and 99.9% are marketed that way.
However, the 9-5 office crowd wants to come home to a quiet cozy
environment and this just doesn't make sense. Lofts are great
for artists and others needing a large workspace to immerse
themselves in. For those who will simply complain about such
activity - it is probably best to seek a home more suitable for
your needs.
Investment Value
Limited market appeal means less
return in a cool market. Lofts are often in older parts of town
that were once mostly ignored. Therefore the neighborhoods often
are not that great but close to city centers. Obviously, older
people, families and expecting families will have little
interest and your market will be young, single, hip types. This
market demographic is the weakest financially. There are a small
percentage of high end buyers which really gravitate towards
lofts. This group is too small for the average investor to cater
too. They are not looking for the typical loft but rather a huge
space that can be done to the 9's.
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