Micro-Suites - A cheap Solution?

[gladaki]

Really ?
Any one from calgary got one ?

CHEAP CONDOS CAUSE FRENZY - Brand-new condos for less than $100,000 caused a buying frenzy in Surrey, Saturday. The micro-suites in the 35-storey Evolve tower at 133rd Street and 103A Avenue attracted a lineup of hundreds of eager investors. Three hundred homes worth about $70 million were sold in an hour-and-a-half-long rush that resulted in a few arguments and heated exchanges among the crowd. “You don’t see that under $100,000 every day,” said Curtis Honey, who drove from Edmonton with his brother to pick up a 316-square-foot micro-suite. Out of 406 homes, about 80 were microsuites – most were gone by the end of the day. The cheapest was listed for $93,900. The tower is going up in Surrey’s West Village, which is expected to become a major hub for the city in coming years. More than 2,800 homes are forecast to be built there over the next seven years.
http://www.castanet.net/news/BC/1373...s-cause-frenzy

[Winsor_Pilates]

Bad concept for that location IMO.
Would make sense in downtown Vancouver, but going that small in the suburbs makes no sense.
That's an area where people can afford to buy larger and people usually buy for the sake of getting larger, so the upside to buying such a small place is unlikely to me.

[chedder]

Wow. Edmonton must really be no good if you want to drive to Surrey to buy a shed sized condo!

[drewboy12]

Originally Posted by Winsor_Pilates

Bad concept for that location IMO.
Would make sense in downtown Vancouver, but going that small in the suburbs makes no sense.
That's an area where people can afford to buy larger and people usually buy for the sake of getting larger, so the upside to buying such a small place is unlikely to me.

Not downtown Vancouver, no one in their right mind would build a tower and sell suites for $100k, but the surrounding downtown east side, east Van, Main street. Those things would sell like hot cakes. I would drop $100k for 350sq/feet on Commercial or Main Street in heartbeat.

[Nage Waza]

Originally Posted by Winsor_Pilates

Bad concept for that location IMO.
Would make sense in downtown Vancouver, but going that small in the suburbs makes no sense.
That's an area where people can afford to buy larger and people usually buy for the sake of getting larger, so the upside to buying such a small place is unlikely to me.

They sold out in an hour, that tells me it was perfectly located.

Cheaper homes are needed everywhere.

[troutman]

Your place or mine? Yeah, yours.

[Northendzone]

Wonder how many were sold to speculators?

[bizaro86]

Originally Posted by Northendzone

Wonder how many were sold to speculators?

Says they sold 300, so they probably sold speculators about 300.

[Vulcan]

Originally Posted by Northendzone

Wonder how many were sold to speculators?

Yeah, they've got to change the law to require some kind of residency qualification for buying property in the Lower Mainland.

[drewboy12]

Originally Posted by Vulcan

Yeah, they've got to change the law to require some kind of residency qualification for buying property in the Lower Mainland.

They need to painfully tax foreign property investment.

[corporatejay]

Is there a floor plan somewhere?

[Winsor_Pilates]

Originally Posted by drewboy12

Not downtown Vancouver, no one in their right mind would build a tower and sell suites for $100k, but the surrounding downtown east side, east Van, Main street. Those things would sell like hot cakes. I would drop $100k for 350sq/feet on Commercial or Main Street in heartbeat.

No kidding; you and about 5 million other people would buy those.
350 sq feet in the areas you mentioned would cost about $250,000. No developer would be able to build them at that cost (due to land acquisition costs), nor stupid enough to sell for $100,000.

Originally Posted by Nage Waza

They sold out in an hour, that tells me it was perfectly located.

Cheaper homes are needed everywhere.

That doesn't mean anything.
Some of the quickest sellouts have been poor purchases and many developments that take longer to sell end up being much better investments.
When a sales frenzy like that is created, most buyers barely even know what they are buying and I'd say at least 80% were investors.

[Northendzone]

it will be interesting to see if this development spurs similar developments in other cities.

i was also curious about the guy from Edmonton who bought a place - is he planning on moving to Vcr and does he have a job lined up? Or was he planning on buying a place first then getting a job?

for those that bought with the intention of renting the units out, they will likely make a huge profit.

[Winsor_Pilates]

Keep in mind that very few, if any of those people actually got a unit at $100,000.
Usually all of those except one are sold to insiders/VIPs and only 1 (advertised price leader) is kept for the public launch.

[Galakanokis]

Originally Posted by corporatejay

Is there a floor plan somewhere?

Floor plan? It's 300sqft. Just imagine, you can crap and cook dinner at the same time.

[blankall]

When I was a bachelor in university I lived in a 300 sqft place. Really wasn't a big deal. I was poor so had few possessions. Was also busy at work or school all the time, so spent little time in the place.

I think these micro-apartments could be a great alternative for people on a budget who want to live in desirable area but don't want to deal with the hassle of roommates.

[Johnny199r]

Originally Posted by blankall

When I was a bachelor in university I lived in a 300 sqft place. Really wasn't a big deal. I was poor so had few possessions. Was also busy at work or school all the time, so spent little time in the place.

I think these micro-apartments could be a great alternative for people on a budget who want to live in desirable area but don't want to deal with the hassle of roommates.

I agree. Especially if they are always out and about.

[OMG!WTF!]

There are a couple buildings in Calgary that have 300 sq ft condo units at about 100k. They are older and in China town but they've never been that popular. I've seen several apartment buildings with 300-400 sq ft units. Good rentals but I'd have to think most people need more space when it comes to owning.

[Reaper]

300 square feet is more than enough for a shag shack.

[blankall]

Originally Posted by Johnny199r

I agree. Especially if they are always out and about.

Until I was in my late 20s, my place of residence was really just a spot to sleep and watch the occasional movie. The ability to save $200-$400/month by living in a tiny place was an easy trade off.