One Bedroom or Two? There's a Clear Winner.

August 4, 2011

For first-time home buyers, size versus price can be a big question. Do you buy a condo with two bedrooms at a price that might stretch you a bit, or do you choose a one-bedroom and have money left over for a life?

Resale studies show it's better to buy a two-bedroom condominium than a one-bedroom unit. Larger units are more flexible and easier to rent, and they offer higher appreciation.

A survey done by one developer found that, over a three-year period, the average home value of new one-bedroom condos increased by 24 per cent, while two-bedrooms increased by 31 per cent.

A similar study by RealNet, which tracks Canadian real estate facts, confirms this price appreciation, though the study analyzed homes sold prices over a two-year period. RealNet president, George Carras, explains: "What you'll see is an overall trend in the greater price increase on two-bedrooms. There's a 17 per cent increase for one-bedrooms and a 22 per cent increase for two-bedroom suites -- that's a 5 per cent difference, but it can mean thousands of dollars in extra investment return."

Carras says the advantages to pushing your finances for that initial purchase far outweigh the disadvantages: "From a value perspective, you can't deny that the two-bedroom unit is a better investment." He adds that sometimes a two bedroom gives you the kind of square footage that a one bedroom gave you many years ago, because condos are shrinking.

Buyers should also be aware that a two-bedroom condo can often be purchased in Chilliwack or the Fraser Valley for less than a one-bedroom in Greater Vancouver. For instance, a 1,000 square foot two-bedroom suite in Surrey can cost less than a 600 square foot one bedroom in Vancouver.

A July survey by MPC Intelligence Inc. of Vancouver found that the typical price for a new wood-frame condominium in South Surrey/White Rock is from $320 per square foot to $340 per square foot. This compares to more than $550 per square foot in Vancouver for new wood-frame condominiums. For new townhomes, the average price in South Surrey/White Rock is from $250 to $270 per square foot -- less than half the price of similar product in either Vancouver or Richmond.

A local Real Estate Agent in the more affordable areas can help you find the room you want at a price you can afford.

© Copyright 2018

Comments welcomes your opinions and comments. We do not allow personal attacks, offensive language, unsubstantiated allegations or self-promotional content, including promotional website links. We reserve the right to unpublish comments, to edit them for length, style, legality and taste, and to reproduce them in print or online. For further information, please contact the editor or publisher, or see our Terms and Conditions.

comments powered by Disqus

Email to a Friend