Is parking for a condo essential?

[X Condo]

Hi Everyone

I have an opportunity to buy a parking spot at my pre-construction condo, located at bloor/jarvis.

I have a couple of reasons as to why I want to get it:
1) so I can park my car and not pay rent to someone else
2) convenience
3) makes resale easier

Here's a couple of my reservations:
1) Costs, it is $35,000
2) Real Estate/Economic uncertainty, do i want to tie more money into the condo which won't finish for another 1.5 yrs?
3) I may not end up living in the condo so do I want to invest more into something that I won't get to enjoy?
4) proximity to subway may make a parking spot a non essential?

I would appreicate your opinions

 

[carturo15]

How big is the unit? how many sq ft?

 

[X Condo]

The condo is approx 750 sq ft (1 bed + den)

 

[carturo15]

then you should buy it, no parking works for smaller units, like 1 bed less than 600 sq ft, however $35k is a lot of money for a parking spot, but for resale it is better to have parking

 

[DSC]

then you should buy it, no parking works for smaller units, like 1 bed less than 600 sq ft, however $35k is a lot of money for a parking spot, but for resale it is better to have parking

There has been other discussion on parking spaces in Urban Toronto and this advice is sound! Having parking can make the difference in being able to sell a unit and one can usually rent out parking (at least to a fellow resident.)

 

[Solaris]

I would answer your question by asking you another question, does your lifestyle / leisure routines include places that require a car to get to ?

although X Condos is very close to the subway, if I was living there I would still get a parking space (as long as I have the $$) because I want my car close by ... as I can see myself as a person that frequents Markham / Richmond Hill / Mississauga even if I lived downtown

 

[xstatik]

In a down market having a parking spot could even be the difference if you can even sell the unit or not. There are many buyers where there is a couple with one working downtown and the other working in Mississauga or Markham, where they need a car. Your potential pool of buyers is greately reduced if you have no parking spot with the unit.

 

[kennyx]

I dont think it's essential... especially @ $35k.

Maybe Im thinking of this the wrong way, -but if you were buying something, wouldnt you be willing to buy a place that's $35k cheaper for a similar unit w/o parking?
Parking in toronto is what? $300/month? so that's $3600 a year.
So unless the buyer is planning to live at least 10years in that unit, would it really make sense to buy it? Plus, -arent maintenance costs higher for units w/ parking?

 

[carturo15]

I dont think it's essential... especially @ $35k.

Maybe Im thinking of this the wrong way, -but if you were buying something, wouldnt you be willing to buy a place that's $35k cheaper for a similar unit w/o parking?
Parking in toronto is what? $300/month? so that's $3600 a year.
So unless the buyer is planning to live at least 10years in that unit, would it really make sense to buy it? Plus, -arent maintenance costs higher for units w/ parking?

Yes, you are right. I used to live at 15 Fort York Blvd and a parking spot in this buildind costs $25-28k. these buildings have a lot of parkings spots that are not being used and you can easily get now one for $100 a month, that is $1.200 a year. the mortgage payment for $25k is about $150 a month, plus $35-40 for maintennace, it is almost $200 monthly

 

[xstatik]

I dont think it's essential... especially @ $35k.

Maybe Im thinking of this the wrong way, -but if you were buying something, wouldnt you be willing to buy a place that's $35k cheaper for a similar unit w/o parking?
Parking in toronto is what? $300/month? so that's $3600 a year.
So unless the buyer is planning to live at least 10years in that unit, would it really make sense to buy it? Plus, -arent maintenance costs higher for units w/ parking?

The problem is availability. I would never buy a condo without a parking spot. I need my car to get around.
What if there are no spots available for rent? (many buildings don't have spots available)

Also, good luck selling the condo without a parking spot, I've seen units sit on the market for months because there is no parking spot included, even though it was discounted for as much as $50,000

 

[X Condo]

Thanks everyone for your replies!

Realistically, I'm looking at selling at least one year after occupany so still 2.5 yrs from now. Even if I don't make money on the parking spot, I'd rather have it as my own rather than rent it from another owner.

I currently do have a car so I will need to park it somewhere and my family is in Markham so I will be going back and forth on weekends and such.

My out of pocket expense would be the 20%-25% of the costs so $7,000 - $8,750 for the deposit which isn't too bad.

I figured the extra mortgage payment would not be detrimental. I'm more concerned about the potential resale attractiveness if i didn't have a spot.

 

[cdr108]

The problem is availability. I would never buy a condo without a parking spot. I need my car to get around.
What if there are no spots available for rent? (many buildings don't have spots available)

Also, good luck selling the condo without a parking spot, I've seen units sit on the market for months because there is no parking spot included, even though it was discounted for as much as $50,000

There are many reasons why units sit on the market for months, (ie. poor interior layout design, bad quality, overpriced, over supply, etc.) especially if you're talking about the current RE market cycle since January 2008.

However, considering XCondo's unit size and personal needs, I think it would be better to have the parking spot. If it were a smaller unit, then maybe not.

 

[xstatik]

There are many reasons why units sit on the market for months, (ie. poor interior layout design, bad quality, overpriced, over supply, etc.) especially if you're talking about the current RE market cycle since January 2008.

.

But a condo lacking a parking spot greately diminishes the pool of potential buyers, as I would say 60-80% of resale buyers want a parking spot.

 

[jks]

Wow, 16-16, my vote made it tied

 

[TrickyRicky]

If you are looking to sell in as little as 1 year after occupancy (good luck for your condo to even be finished by that date) I would consider your purchase an investment not your home. Therefore you must use investment logic not personal life-style considerations as the basis of your choice. As such there is no choice, parking is required period. Never ever invest in any property that lacks the requisite amount of parking. If the parking is too expensive you must factor that into the original purchase decision and walk away from the opportunity accordingly.