A guide to rental investments, Victoria
“An investment condo can be a rewarding opportunity provided investors follow a basic rule that helps ensure the purchase is cash positive and not a drain on personal finances.”
[Read More by Marko Juras is a Realtor® with Fair Realty]
BUT! it all depends on your goals and strategy. If you just want to create a positive cash flow plus growing equity then investing in a 1 bedroom is probably the best way to go. Rule 101: rule: buy a small, lower priced unit in a quality concrete building within walking distance of downtown Victoria. If you select the right condo in the right location, current rental prices should cover all of your costs. The only downside is when there is a glut of one bedrooms on the market because everyone is following this trend. At that point, your prices will fall in order to compete or you will have lots of calendar gaps because a renter could not be found at the original price.
If your goal is to eventually retire or resell your property then 2 bedrooms is the best way to go. Other benefits of two bedrooms would be the fact that they are most in demand at all times of the year either for renters or buyers and there will be few calendar gaps if they are in the right location. Two bedrooms are still rather rare, especially furnished, so prices have stayed constant. The fact that your 2 bedroom is likely to be fully occupied all year will offset the gaps and revenue drop of a one bedroom when there is too much inventory,
The downside is that rental rates may (or may not) not cover all your costs. Again, your goals are what is most important in selecting the best type of condo for investment purposes.