Are 2 bedroom condos the next big thing?
I'm not talking about the 700 sq ft 2 bedroom condo. I am referring to the 1000 sq ft + condos.
For years, all the craze has been about the small investment condos that you can buy and flip or buy and rent out to the young professional or the student going to school down the street. The shoebox in a prime location has and continues to be in high demand.
Investors have made a pretty penny buying these and builders have made millions by maximizing the amount of units they sell within a condo tower. For this obvious reason, the large condo units in the core of the city are pretty much non-existent.
The problem I think we will experience in the years to come is that the detached homes remotely close to the city are becoming extremely expensive and not affordable for that young family. Couple that with the fact the older generation looking to downsize into a condo are not inclined to sell their 3000 sq ft home to move into a 800 sq ft '2 bedroom condo'.
So where does this lead us?
Well I think some builders have already caught onto this and are now looking to build those larger mid-rise buildings in neighborhoods where the demographics would allow for successful projects.
Everyday I'm noticing larger condo units in older buildings selling very quickly and for more than asking price or renting out within a few days. In the years to come, I think this demand for the larger condo units will only increase given the current lack of inventory and the increasing home prices. Buying the smallest unit in a new building has always been the goal of many condo investors but there is a definite shift happening and spending a bit more money to get that larger unit may be your better option in today's market – that is, if you can find one.