It might seem like a simple yes or no question: Should you get a parking space with your condo?
- Do you have a car? Then yes.
- Don’t have a car? Then no.
But it’s not that simple – especially if you consider the costs, potential cash flow from renting the space, or the pros and cons if you’re an investor.
Let’s take a deeper look into buying a parking space with your condo:
1. Availability and Costs
Most buildings will have an option to buy a parking space with your unit. But keep in mind that there are usually fewer parking spaces than units, so competition for them can be tough. Additionally, there will most likely be extra taxes and monthly maintenance fees that come with your parking space, so keep that in mind when you’re budgeting.
2. You might not really own your parking space
Is the parking space deeded to you, or is it deeded as a separate property? When you make an offer to buy a condo, you’ll receive a status certificate for the unit. This document will cover various details, but in this case, you’ll want to look for where it details whether or not you actually own your parking space.
3. Are you allowed to rent it out?
Parking space bylaws change from building to building; check with your condo board before you consider renting out your spot. Some condo boards allow tenant-to-tenant parking space rentals (for security reasons), while others either don’t have defined bylaws or don’t allow renting parking spaces at all.
How much can you get?
On average, a parking spot in Toronto costs $150/month to rent or $30,000 to purchase. But there are exceptions – for example, a Yorkville parking space was once sold for $100,000.
What you can expect when purchasing, renting out, or selling your parking space really depends on location. Here are a few examples of parking space costs for condos in the West End:
Eau Du Soleil
Neighbourhood: Humber Bay
Cost to Purchase Parking: $15,000
Neighbourhood: The Junction
Cost to Purchase Parking: $38,000
Cost to Purchase Parking: $50,000
If you’re an investor looking to purchase a condo as an income property, approach the situation as if you’re a prospective tenant. While many Torontonians forgo cars in lieu of public transition or cycling, those with families or those commuting outside of the downtown core will most likely need parking space for a vehicle. At the end of the day, you need to picture your ideal tenant, imagine their needs, and purchase according to them.
Need a hand finding the right condo – with or without parking? Let me show you some great options. Let’s grab a coffee!