Real Estate

2bdr vs 3bdr condo in Burnaby

  • Last Updated:
  • Jul 29th, 2018 11:06 pm
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[OP]
Jr. Member
May 22, 2013
172 posts
55 upvotes
Vancouver

2bdr vs 3bdr condo in Burnaby

In terms of price appreciation as a principle of residence, will a 3-bedroom condo in Burnaby typically generate higher returns compared to a 2-bdr condo in the same building?

I'm planning to buy in the near term and was thinking if the higher price of a 3bdr and higher strata fees will be worthwhile in the end when we decide to retire and downsize in like 20 years.
26 replies
Deal Fanatic
Oct 7, 2007
7957 posts
3974 upvotes
If it were me, I would really think twice before buying anything right now UNLESS you don't care if the prices go down in a serious way sometime in the next 5 years. Prices are trending down already but the media hasn't said peep on this. You may want to check out the statistics and trends at the GVREB site just to get a sense of what is happening and also what factors might be contributing to a decrease in the future. Looks like the media is not talking about this on purpose and one can only speculate why.
Deal Addict
Jun 29, 2007
4853 posts
1493 upvotes
rMBA13 wrote: In terms of price appreciation as a principle of residence, will a 3-bedroom condo in Burnaby typically generate higher returns compared to a 2-bdr condo in the same building?

I'm planning to buy in the near term and was thinking if the higher price of a 3bdr and higher strata fees will be worthwhile in the end when we decide to retire and downsize in like 20 years.
I would think twice about buying a condo right now. I know they are lower priced and "affordable", but I think they are overpriced right now relative to detached houses. Good luck.
[OP]
Jr. Member
May 22, 2013
172 posts
55 upvotes
Vancouver
I'm just being greedy when others like you are fearful
Deal Addict
Jan 17, 2006
2130 posts
2211 upvotes
Toronto
Can't advise much on the subject but can recommend to not take advice from bears here that have been advising to not buy RE for last few years.
Deal Addict
Oct 13, 2006
2266 posts
743 upvotes
Burnaby
Also depends on where and in what building in Burnaby ie Metrotown, Brentwood, SFU, Lougheed Town Centre, South Slope, Highgate etc. A condo is generally a depreciating asset as the building ages so no one knows that 20 years from now you'd be able to sell for above what you paid for factoring inflation.

The 'luxury' condos 3bdrm is pushing if not well past 1M. At that point, might as well start looking for a house on a good piece of land.
Last edited by amplified on Apr 22nd, 2018 11:48 pm, edited 1 time in total.
Member
Jun 15, 2017
298 posts
129 upvotes
Keep it simple and go for 2 BR if investment
If for own living purpose depends on ur family size u can go for 3 BR if u want
Deal Addict
Jun 29, 2007
4853 posts
1493 upvotes
rMBA13 wrote: I'm just being greedy when others like you are fearful
Are you referring to me or choclover?

I have multiple degrees and bought multiple houses over past few years in metro Vancouver. I may know what I am talking about. Smiling Face With Sunglasses
Deal Fanatic
Oct 7, 2007
7957 posts
3974 upvotes
I'm probably wrong but do care about my fellow people in the Lower Mainland. I think there are a lot of developers and others cashing in at the expense of people who just want to live a normal life. Alot of these people also suffer from FOMO. If the purchase is just to get in on the game like a "gambler" then I am no expert there and would not give advice. Go with your gut. But if you were looking to purchase to live in for some period of time, then I would be a little careful in this time when a lot of downward pressures are causing house prices to go down. Just FYI, the detached price of a home on the west side of Vancouver (not Burnaby, I know) went down $500k between Feb 2018 and Mar 2018. But, again, go with your gut.
Deal Fanatic
User avatar
Dec 27, 2009
7119 posts
4276 upvotes
Victoria, BC
rMBA13 wrote: I'm just being greedy when others like you are fearful
Lol, okay. Lots of luck. Vancouver is a bargain, better buy 2 or 3 of these units while they are still rock bottom hmmm.
[OP]
Jr. Member
May 22, 2013
172 posts
55 upvotes
Vancouver
Getting back to the topic here... between 2 bdr and 3 bdr condos, which ones would generate better returns in the long run?

While the 3 bdr condos are low in supplies, there's definitely less and less family have two or more kids these days.
Deal Addict
Jan 27, 2015
1037 posts
462 upvotes
Edmonton, AB
rMBA13 wrote: I'm just being greedy when others like you are fearful
Actually, everyone's being greedy when it comes to condo sales. Have you seen the year-over-year increase in prices?
[OP]
Jr. Member
May 22, 2013
172 posts
55 upvotes
Vancouver
FinancialFreedom wrote: Actually, everyone's being greedy when it comes to condo sales. Have you seen the year-over-year increase in prices?
Condo inventory is finally rising for the first time ever
Sr. Member
Feb 1, 2010
872 posts
173 upvotes
rMBA13 wrote: I'm just being greedy when others like you are fearful
Lol. What a misquote. 'Fear' in this context would imply that people were exiting their condos from the balcony to collect on insurance, and avoid their family's bankruptcy.
Deal Fanatic
User avatar
Jun 26, 2005
9973 posts
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Toronto
rMBA13 wrote: In terms of price appreciation as a principle of residence, will a 3-bedroom condo in Burnaby typically generate higher returns compared to a 2-bdr condo in the same building?

I'm planning to buy in the near term and was thinking if the higher price of a 3bdr and higher strata fees will be worthwhile in the end when we decide to retire and downsize in like 20 years.
Always. Bigger appreciates faster
Deal Addict
User avatar
Dec 14, 2007
3102 posts
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rMBA13 wrote: I'm just being greedy when others like you are fearful
You forgot the first part of that quote:
Be Fearful When Others Are Greedy and Greedy When Others Are Fearful
RFD does not reflect the majority... and the majority are not fearful at all, at the moment. As for appreciation, 3 bedroom units will always appreciate more than 2 bedroom units as there is a smaller and smaller supply of them. If nothing else, a 3-bedroom unit will sell faster in a slower market due to their relative rarity.
I'd love to write history... in advance.
AMEX Biz Plat 75K AGAIN! | Plat 60K | Biz Gold 40K | Gold 25K | SPG 20K
Deal Addict
Jan 14, 2009
1947 posts
988 upvotes
Vancouver, BC
3 bedroom, especially when combined with other important factors like location, layout, and exposure.
[OP]
Jr. Member
May 22, 2013
172 posts
55 upvotes
Vancouver
rfdrfd wrote: Always. Bigger appreciates faster
Ok, i will go ahead and buy the 3bdr condo
Member
Dec 15, 2005
314 posts
74 upvotes
rMBA13 wrote: Ok, i will go ahead and buy the 3bdr condo
Totally depends if you need the space, if you plan to live in it, or is it purely for investment?

How much more is this 3 bed compared to a 2 bed and which complex?

One thing to factor in is, they don't build as much 3 bed apartments nowadays because they sell slower. My guessing is mainly because the price of a 3 bed pre-sale is reaching $900-$1m and that's getting you into townhouse range. That, along with the larger square foot means you're paying a lot higher in strata fees (at least $450+) whereas a standalone townhouse complex (not the ones attached to an apartment) have a strata fee around $200? That's at least $250 in monthly costs that you can use to apply to your mortgage instead, which is used to pay down equity.
[OP]
Jr. Member
May 22, 2013
172 posts
55 upvotes
Vancouver
On the flip side, the Burnaby market is flooded with 2-bedroom units and some projects don't even have any 3-bedroom units at all.

Newish 1bdr cost around 600K and generates 1.8K/month in rental income.

Newish 2bdr cost around $850K and rents out for $2.4K/month.

Newish 3bdr cost around $1.1M and rents for $2.7K/month.

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