Is parking for a condo essential?

[PukeGreen]

But really, that $35,000 parking spot would probably just mean that you can afford $35,000 less condo. So if you pay for the parking you're gaining a parking spot but losing something else, say square footage or a balconey or nicer finishings. Likewise, the value of the condo would increase because it has a parking spot, but it would decrease because its smaller and has no balcony or less fancy finishings. You gain some here, you lose some there, and in the end there's probably not much difference. I say buy the condo you want to live in, with the features that match your lifestyle. If you're planning to sell within one year of closing, I would question why you would want to buy a condo at all in this shaky market.

While I agree that most people own cars and therefore, statistically, a condo with a parking spot will probably sell a bit faster, I don't believe that the simple lack of a spot will render your condo utterly unsalable as some have inferred, at least not in a downtown location near the subway with walkable amenities. My wife and I don't have a parking spot in our current condo, and if we eventually move up to a larger unit, we will only look at units without parking. I have no intention of owning a car again, so why would I want to spend money for a feature I don't want or need? $35,000 is hardly pocket change, and I wouldn't want the hassle of constantly trying to keep a spot rented out. I know a number of others in the same boat, so units without parking also have their own target market in the downtown core, even if it is statistically smaller than the car-dependent crowd.

 

[cdr108]

Another factor to considering ... if your plans have changed and you are not looking at living there anymore, can you 'assign' your unit before occupancy?

If so, then depending on how many parking spaces are still available from the developer, you may not have to put down the money for the space since the potential purchaser can buy it directly from them.

 

[TrickyRicky]

Deciding not to own a car and crafting a lifestyle where car ownership is not required is probably one of the smartest personal financial decisions you can make as an individual. But property investment is property investment and it looks like the buyer in question fits the investor profile more than the occupant profile. Trying to sell a condo in this city 2 years from now is going to be like death. I'm not suggesting a return on investment would be made by buying the spot. Infact it could be money down the drain. What it will buy is potential liquidity. So it may be the difference between being able to sell at a loss or not being able to sell at all at anything but a fire-sale price.

 

[kennyx]

Deciding not to own a car and crafting a lifestyle where car ownership is not required is probably one of the smartest personal financial decisions you can make as an individual. But property investment is property investment and it looks like the buyer in question fits the investor profile more than the occupant profile. Trying to sell a condo in this city 2 years from now is going to be like death. I'm not suggesting a return on investment would be made by buying the spot. Infact it could be money down the drain. What it will buy is potential liquidity. So it may be the difference between being able to sell at a loss or not being able to sell at all at anything but a fire-sale price.

Good point, -Im not sure if it was this thread, or the X Condos thread... but the buyer indicated that he had bought pre-construction, and I think he mentioned he paid around $360 per sq/ft... so Im pretty sure there wont be a problem with profit...

 

[ggom1]

I'm also trying to decide whether to buy a spot, but am in a slightly different situation.

In your case, since you own a car, I think that you should buy the spot. It's costly, but having the spot will be useful to you while you're living there.

In my case, I don't drive but my friend/neighbor has an extra spot which he has offered to sell to me for $30,000 - so, I'm looking at this from a purely investment/resale standpoint. I live at Richmond/Spadina, so there are TTC and car share options just a few steps away. My building isn't too large and it seems like most residents own parking - there always seems to be at least one "parking for rent" sign up in the recycling room. So, I've decided against buying the spot because I have difficulty justifying the extra $30,000 and there are a lot of other things I'd rather use that kind of money for. Condos in my area are pricey to begin with and I feel like adding the parking spot might even remove the appeal of my condo to people who are looking for a lower-priced unit.

 

[cdr108]

wow, 50/50 split ... i think that's an indication of the changing views and needs regarding parking in central locations.

Another thing that came to my mind is the proliferation of auto share companies like autoshare, zip, etc ... which has changed some car users needs and requirements to purchase a vehicle.

 

[Observer Walt]

ggom1, welcome to the forum. It sounds like you have made a logical decision. You don't mention how many parking spaces there are in your building, but if there are continually spaces being offered for rent, it's possible that the building was built with too many spaces for the demand. In that case, a space may very well not hold its value.

I don't think there is any flat rule in this regard. Look at whether the building has a surplus or shortage of spaces, as your best indicator of whether the space will hold its value. Location is obviously key as well. An apartment out in the burbs will lack appeal if there is no parking space, no matter how much in favour of a car-free lifestyle you may be.

 

[ggom1]

Thanks Observer Walt These forums were really helpful when I was buying my condo - there's a lot of interesting info here. I don't know exactly how many spaces are in my building, but just eyeballing, I suspect that there are probably about an equal number of parking spaces and condo units. At the time it was built, supply and demand were probably about equal, but it seems like there are now fewer people driving, so demand is dropping.

Just to add - my friend's mom has been a realtor for many years, focusing on downtown condos. I asked her advice and she noted that while in previous years, parking was a very important part of the condo purchase, things have changed so that now, condos within a 5 minute walk to TTC are selling well even without parking.

 

[Tuscani01]

Im doing some work on marketing a project in the city and came across this interesting stat: About 80% of 1 bdrm units sold, are sold without parking or the purchaser does not require parking.

A past project in the city was running low on parking, so the developer offered a discount to anyone who purchased a unit without parking. This resulted in the 1 bedroom units flying off the market.

 

[cdr108]

Interesting observations ggom1 and Tuscani01 ... thanks for the input.

 

[X Condo]

Im doing some work on marketing a project in the city and came across this interesting stat: About 80% of 1 bdrm units sold, are sold without parking or the purchaser does not require parking.

A past project in the city was running low on parking, so the developer offered a discount to anyone who purchased a unit without parking. This resulted in the 1 bedroom units flying off the market.

I think the issue here is that developers did not even offer parking units to 1 bedroom apartments. Typically, only large 1 bedroom or normally 1 bed + den and larger were eligible for parking.

 

[lister]

I think the issue here is that developers did not even offer parking units to 1 bedroom apartments. Typically, only large 1 bedroom or normally 1 bed + den and larger were eligible for parking.

That was the case for my unit at The Hudson. At the time of purchase during pre-construction I was told I'd have to go on a waiting list like some other buyers as there was less spots than units. Yeah right! At that point I had finally finished paying off my car loan and I wasn't going to take a risk that I wouldn't get a spot. I told the sales women point blank that if I don't get a parking spot then it's no sale. She got on the phone with some muckety-muck and I got a spot.

 

[Solaris]

That was the case for my unit at The Hudson. At the time of purchase during pre-construction I was told I'd have to go on a waiting list like some other buyers as there was less spots than units. Yeah right! At that point I had finally finished paying off my car loan and I wasn't going to take a risk that I wouldn't get a spot. I told the sales women point blank that if I don't get a parking spot then it's no sale. She got on the phone with some muckety-muck and I got a spot.

good for you lister ... standing up to them !

but honestly, I think that approach only works if the builder wants the sale more than you want the unit ... had it been 6 months ago in the red hot market , the builder would have probably just said "that's unfortunate ........ NEXT !"

 

[cdr108]

... had it been 6 months ago in the red hot market , the builder would have probably just said "that's unfortunate ........ NEXT !"

No SPOT for you, NEXT !

 

[Felino]

If you buy anything less than a 2 bedroom unit, don't buy a spot.

What many builders don't tell you is that you will be charged a fee for parking maintenance. In Toronto many condos charge those who own spots $50-$75 a month just to 'maintain' your spot.

In other words, you pay $25-25k for it, and have to pay an additional $50-$75 a month for what? It's a scam.

Don't do it.