One vs Two Bedroom as an Investment

If you are looking at purchasing an investment property and you are trying to decide between a one bedroom apartment and a two bedroom apartment (or condos), it is important to consider the pros and cons of each one and what exactly you are looking to get out of your investment.

Appreciation

When considering an investment, consider the concept of appreciation. This refers to the concept that the price of a condo/apartment increases over time. For a one bedroom apartment vs a two bedroom, the price could increase by the same 10% but the more expensive two bedrooms could be over 10,000 dollars more in profit. The appreciation tends to be more on a two bedroom as opposed to a one bedroom, therefore making it more valuable.

Future Resale

Resale value isn’t something we can personally control. Though we can maintain, improve and work on the property, there are forces greater than us that more heavily impact the resale value, these forces are the supply and demand. Based on trends that include less kids and smaller families, as well as the fact that property sizes (condo/apartment sizes) have decreased significantly over the last ten years and the fact that condos are an affordable alternative to a house, it can be inferred that two bedroom apartments are a better investment if the end goal is resale.

Can I Rent It?

One thing that is extremely important to consider is the ‘rentability’ of your property. This is a great way to help make your payments and some profit to reinvest as well. Two bedrooms can appeal to a larger demographic such as friends, young families and young couples as well. One bedrooms can be more expensive to renters on a monthly basis as often it is not split but is paid by one individual.