Buying a Parking Spot with Condo a necessity?

Discussion in 'Real Estate General Discussions' started by exstasie, May 26, 2008.

  1. exstasie

    exstasie Active Member

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    I am a new condo buyer and just had a question about parking spaces.

    From I've been told, you should always buy a parking space if it is an option to you when buying a condo (new).

    I was just wondering from people with experience (and not just relying on word of mouth) if this was true.

    Is it that much more difficult for resale if you do not have a parking space?

    Also, how much could you possibly rent out a parking space for in a brand new building? I guess it depends on the availability and the demand for parking, but was just wondering.

    Thanks!
     
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  2. OnceAThief

    OnceAThief Active Member

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    The people advising you are correct.

    I think parking generally goes for between 150 and maxes out at around 250. Depending on location.
     
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  3. northstar

    northstar New Member

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    Parking

    p.s. I'm assuming you're talking about a downtown condo.

    If you can afford it, I'd recommend to buy the parking spot.
    If you don't have a car, you can always rent it out. (anywhere from $100 to $250/mo)
    Resale value of your condo will go up with a parking spot.
    So unless you plan on living in your condo for the rest of your life,
    the decision to purchase a parking spot will be a wise investment.

    (p.s. I know a lot of naysayers say that one doesn't need a car in downtown Toronto, but one still needs a car to get to work or visit friends in an area served less frequently by transit, unless one wants to ghettoize himself).

    Note, I realise that zip car is an option, but there will always be people who will want a car. The city is NOT creating more parking spaces, in fact parking lots are disappearing; therefore with shrinking supply, it stands to reason that demand for a condo with a parking spot will increase (or at least stay the same as it is now).
     
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  4. s2kdarren

    s2kdarren New Member

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    your parking space will go up in value just like the condo will.......
     
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  5. Observer Walt

    Observer Walt Senior Member

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    ^ Generally true, at least in the downtown area. They were typically worth about $20,000 just a few years ago, now some are selling at $25,000 - $30,000. Many people have cars and need them to get to work etc., even in the downtown core area.
     
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  6. xstatik

    xstatik Banned

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    It is very necessary!

    Forgetting about the value impact, the condo will sit on the market for a GREATLY LONGER PERIOD of time when it comes to resell.
    There was a report in the Star a few weeks ago (copied below) where they stated that 71% of people rejected a condo for a lack of a parking space.

    "http://yourhome.ca/homes/article/422711
    Parking spot key to condo resale
    Torontonians shopping for a condominium place a premium on garage appeal, according to TD poll
    May 8, 2008

    Tony Wong
    BUSINESS REPORTER


    If you're looking to buy a condominium as an investment, or are concerned about resale value, make sure you get that parking spot.

    Lack of parking was the number one reason cited by 71 per cent of Toronto area buyers for not buying a particular condo, according to a TD Bank Financial Group poll released yesterday.

    "Parking can definitely be a deal breaker," says Darren Ford, an agent with Right At Home Realty.

    "It's one of those things that can cause a buyer to walk away."

    Lack of parking (71 per cent) edged out lack of building security (70 per cent), the second-ranking reason Torontonians say they would reject a condo.

    Parking is less of an issue downtown, where many buyers have access to the subway, says Jamie Johnston, a condominium specialist with ReMax.

    While many downtown parking spots start at $25,000 and go up to $40,000 and above for luxury units (more than the price of some cars), parking is not an option for many buyers.

    Some builders also do not offer parking spaces with the smallest units.

    The Greater Toronto Area remains the top spot in Canada, if not North America, for condo developments, with 280 projects on the market in the fourth quarter of last year, according to condo research firm Urbanation.

    The most popular price range, according to the TD poll, is $200,000 to $400,000, within which 56 per cent of Toronto residents say they would buy a two-bedroom condo.

    Some analysts have voiced concerns that there is too much product coming on the market to support the demographics.

    There will be more than 10,000 new units being completed every year over the next several years, adding substantially to the current stock.

    "Given the amount of product out there, you have to think there will be some kind of adjustment," says realtor Ford.

    "There is a lot of hype in the market."

    Johnston, who has the largest single office devoted to condo sales in the GTA, says his sales are actually up about 9 per cent compared with the same time last year.

    Johnston is not calling for a market correction, but he also feels that prices and sales will "flatten out" over time.

    But so far, condo prices continue to rise.

    A Royal LePage survey of house prices tracked the average price of a standard two-bedroom condominium in the first quarter of the year at $298,662, or 6.9 per cent higher than the year before.

    Meanwhile, according to the TD survey, the top reason given for buying a condominium was the prospect of less maintenance than a house, with 38 per cent polled, followed by downsizing/retirement at 19 per cent.

    Living downtown and affordability were the next most popular reasons for buying a condo.

    Surprisingly, given all the sales of new units, owning a brand new condominium was the least important amenity for 56 per cent of Toronto respondents, according to the survey.

    "People don't want to move in four years from now. They want their unit now," says Johnston.

    The TD survey was conducted by Angus Reid Strategies between March 20 and 25 and is based on a total of 1,200 online interviews.

    The margin of error is plus or minus 6.9 per cent, 19 times out of 20.



    Toronto Star "
     
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  7. Conrad Black

    Conrad Black Senior Member

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    City TV ran a story yesterday about downtown parking. They mentioned that the condo planned for University south of Dundas will have no parking.
     
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  8. Thesb

    Thesb Active Member

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    I think it depends on the size and location of the condo. Mine is only 600 sq. ft., close to TTC, and I couldn't afford the extra 20 grand for a parking spot. Should I decide to sell in a few years, I figure many potential buyers will be entry-level purchasers, just like I am now: carless and broke!
     
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  9. Granny

    Granny Active Member

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    Another tip, just to keep your future options open. Have your lawyer check with the builder to see if you can deed your parking spot as separate. ( You probably will be able to)
    If you choose to, down the road, you can sell it to one of the other residents in the building for a tidy profit. Those little patches of asphalt are going up faster (precentage wise) then condo units. ..Thats why, when I was given the opportunity to, I bought two.;)
     
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  10. exstasie

    exstasie Active Member

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    Yup, the sales rep. who I just bought the condo from informed me that it is indeed a separate so I can sell it if I need to!


    So as I mentioned, I just put the down payment on my new condo which includes a parking spot & Locker! I couldn't afford the parking, so my father is essentially going to pay for it (even though everything is in my name) and keep it as an asset for himself, and I can just buy it off of him (or let him give it me lol) later on.

    Thanks for your help! It's exciting to finally become a home owner :D
     
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  11. OnceAThief

    OnceAThief Active Member

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    Just out of curiosity, where did you buy?
     
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  12. exstasie

    exstasie Active Member

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    I bought a condo @ Vu (Jarvis & Adelaide)
     
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  13. rbt

    rbt Senior Member

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    Technically that is incorrect. There are thousands more parking spaces downtown today than existed 5 years ago. A surface lot holding 60 cars will be replaced by several stories of parking holding 300 cars.

    Two things change:
    1) They are private fully reserved spaces instead of public and available on a per day/hour basis.
    2) Population increase and demand outstrip the increased supply by a significant margin.
     
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  14. ducati0000

    ducati0000 Active Member

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    I would definitely buy a parking space,rent it out and more than likely it will cover your monthly maintenance charges.When you sell it you get your money back and more.Its worth it..same as storage room..
     
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  15. cdr108

    cdr108 Senior Member

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    how much are they charging for parking spots at Vu?
     
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