Buying a 1 Bedroom condo in Portland Oregon is absolutely NOT a bad investment. The largest demographic of condo dwellers is single and under 30, and Empty Nester's over 55. Many of these buyer's can only afford or only want a 1 bedroom. There will always be a market for this type of space and you should not be worried about putting your money in this type of investment.
Hope this helps!
I specialize in the condo and loft markets so I will only direct my answer to your question with regards to the condo market. Are 1 bedroom condos a bad investment..absolutely not! There is always a market for first time buyers that cannot afford to pay anymore than what 1 bedroom units are priced at. The key to any investment is timing! Perhaps the advice you have gotten comes from someone that just had bad timing with their purchase? When you are making a purchase, what is the inventory like? Are there many properties on the market where sellers are competing to get their unit sold? As an example, last week a small 630 square foot unit in South Waterfront went on the maket and was sold in 2 days and had 3 offers. Why? Because there are not many units like that on the market.
Keith below made a good comment about the time frame you are looking to hold it for. If it is very short term, you should not be looking for a strong return on your money...it could happen, but not likely. You should look at your purchase as a place where you will be living and a place you love to come home to at night. Sure, you want to make a great investment when you do make your purchase, and as an agent, my goal is to find you a great place at a good price.
Too many people the last10 years or so started to look at their home solely as an investment. Instead, it shoud be a place of enjoyment and relaxation. As for the investment side of things, I think your timing will be fine. Yesterday the Wall Street Journal published a report about if we have hit the "bottom" of the market? You can read more on this on my blog at http://www.TheCondoPulse.com
So, if a one bedroom is what you can afford and you also find the condo of your dreams at a good price... you will do just fine!
...and to Dirk, with no "disrespect" Ellie was looking for advice, not a report that may...or may NOT be more valuable than what people here have to say.
Tom Inglesby, Broker
RE/MAX Equity Group Inc
One bedrooms are not a bad investment at all- for all of the reasons you see below. There are always people just starting out OR conversely who are down sizing and want a smaller place. There are also people who travel frequently to Portland for work and prefer to have a place of their own over a hotel.
What will make it a good or bad investmant is the location and what you pay for it. If you overpay, it doesnt matter what size the unit is- it will take longer to appreciate to the price you paid for it. The most important thing is that you have someone that you trust to point out the pros and cons of the various units you look at.
As a buyer, it is ALWAYS in your best interest to work with a realtor. It doesnt cost you a penny (we are paid by the seller's agent). So, you get the experience and expertise of a professional to assist you in analyzing each property. If you have never worked with a realtor before, talk to a couple. The relationship you have will be a close one and if you dont feel comfortable or that you can trust the first realtor you speak to, talk to another. Just be sure to pick one and stick with them.
Hope this is helpful. Feel free to contact me if you have any other questions.
Cathy Mankus, MS, GRI
The Hasson Company
If there is anything I can do to assist you, I would be delighted to.
Right now it is all about the deal. A one Bedroom can be tought to sell. Let's all be honest here. Unless it is a condo they are almost unheard of. If it has a den or some other spaces maybe a good investment. The real question is what would it take to get a 2 or 3 br and why would you not look at those as well?? Know what I mean?
The best thing I can offer to you is my 25 years of experience and market leading knowledge. Thes eare tough times and there are some great buys. Lets make sure this is a good value before you pull the trigger.
Call me anytime and I will offer you some time free of charge and we will chat and I will email you a meaningful report online! That is worth more than 100 of these free sdvisiory opinions. No disprespect to these fine folks at all.... but true.
All my best to you!
Re\Max Hall of Fame
#1 Rated Re\max Team in Oregon
Commonwealth Real Estate & DeMark Financial Services
415 17th Street, Suites 5-7
Oregon City, OR 97045
There's a saying that smart investors make their money on the purchase, not the sale. Do your homework on researching values of one-bedrooms in your area. And use a good buyer's agent who is familiar with the area where you want to buy.
In my opinion, and as the other writers have pointed out, there is a market for one-bedroom homes. Just make sure you're buying in an area that's attractive to other buyers. In Portland's current market, that's usually close-in neighborhoods, especially those with amenities within walking distance and good access to mass transit.
I think you could look at what the the "big players" in real estate developement for this answer. If one bedrooms were a bad investment ,developers wouldn't build them. There is a certainly a demand for one bedrooms - basically for people who can't afford or don't need a second bedroom. There are many single people and couples who want to live downtown where that is all the space they need.
Do your homework in your purchase. Make sure you do some research on the building you intend to buy in. Make sure there are no pending lawsuits, check the status of the HOA, ask how many units are owner occupied and how many are renters.
When buying a condo - the investment is as much in the building itself as it is in the unit.
If you need some guidance - I'd love to help!
Keller Williams Realty Portland Premiere
I'd be happy to listen what you're looking for and help negotiate your way through all of these questions!
Condos, particularly in the downtown core, are probably more immune.