When investing in a Vancouver presale condo, it's crucial to carefully analyze floor plans and pricing. Developers often market units in a way that justifies higher price tags, but as a buyer, you need to ask: Will you ever make that money back?

A Real-Life Example: Identical Units, Different Prices

Today, I want to highlight a real-life example of two nearly identical presale units—both 547 square feet—but with a staggering $115,000 price difference. Let’s dive into why that premium is unlikely to pay off in the long run.

One-Bedroom Unit: A Smart Investment

One unit is a traditional one-bedroom priced at $474,000. It has a spacious layout, a walk-in closet, an L-shaped kitchen with an island, a well-sized living space, and a huge 124 sq. ft. balcony. At roughly $920 per sq. ft., it’s a solid investment with good appreciation potential.

Junior Two-Bedroom: A Costly Label

The second unit is being marketed as a "junior two-bedroom" at $579,900—a $115,000 premium. The changes? The L-shaped kitchen is removed, the washer/dryer is placed near the entrance, the walk-in closet is eliminated, and a small, windowless room with a closet is added. This extra "bedroom" doesn’t meet MLS guidelines for a two-bedroom classification, making resale challenging. Buyers will see it as a one-bedroom + den and won’t pay a premium for it.

Why the Price Premium Won’t Pay Off

Misleading Marketing Tactics

Developers justify the higher price by suggesting it will command more rent. However, an extra windowless room won’t realistically bring in significantly higher rental income. When both floor plans hit the resale market, the price difference will collapse, and the junior two-bedroom buyer will struggle to recoup their investment.

Square Footage vs. Layout

If this "junior two-bedroom" were at least 600+ sq. ft., a price premium might make sense. But at the same square footage as the one-bedroom unit, the added cost is unjustified.

Final Thoughts: Be a Smart Buyer

I have no issue with developers maximizing their profits—it’s business. But I do take issue with agents misleading buyers into thinking these floor plans are "great investments." Before committing to a presale, do the math and consider resale value, rentability, and price per square foot. If a layout tweak is costing you $100,000+, think twice.

If you’re looking to invest in Vancouver presale condos and want expert guidance, feel free to reach out. Let’s make sure your money is working for you—not the developer.

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