Should You Buy A Parking Space?

By: Thomas Cook

Should You Buy A Parking Space?

According to a new article in the Toronto Star, condo buyers in Toronto are shifting towards a trend that sees them saying “no thanks” to parking spots more often, instead preferring to make do with public transit or appreciate many Toronto neighbourhoods’ ease of walkability.

In one case, a developer interviewed by the star saw that his pre-construction buyers in a west Toronto condo, which is located next to a GO station, weren’t as interested in the four levels of parking he’d intended to build and is going to apply to the city to reduce the required parking amount.

One new Toronto condo project is 42 storeys and has no parking for residents, instead having only nine parking spots reserved for a car-sharing company.
There are several factors impacting this trend. 
First is the expense of purchasing a parking space in new construction downtown.  Presently builders are charging anywhere from $35,000 to $100,000 for just an 8' x 20’ place to park a vehicle.  Typically however on the resale market, although there is a price differential between suites with parking versus without, the markup is often not as high as the builder originally charged.
Second, with many homeowners living and working downtown, they find a car too expensive to operate.  With new bike paths completed and improvements in public transit, residents are finding it more economical, and less hassle, to just rent a car on special occasions.
Finally, with many singles and childless couples living downtown, the lack of a car is not really a concern.  As new wee members are added to their families, the convenience of having a car may change their perspective.
Having said that, a suite that has a parking space does appeal to a wider range of buyers.  That space can be rented for anywhere between $100 to $200 per month if the owner doesn’t need parking themselves.  Also, as a ‘worst case’ scenario, the owner can sell the parking space because almost always, they are deeded separately from the condo apartment.
This is an important discussion to have with your Realtor at a buyer consultation.  When purchasing a home you should consider how long you’ll be living there and what your family and job plans are going forward to be sure you make the right purchasing decision at the very beginning.
What I do know is that a little bit more information can reduce fear and help you see clearer.  Maybe now is the time to start looking, maybe it's not.  But regardless, meeting for a buyer consultation will give you more education than you'll find ANYWHERE else.
Set up your Buyer Consultation or text / email me to talk about it further.
Thomas Cook

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