Parking values are rising faster than condo prices. In fact 50% faster since 2007!
While condo prices have stabilized recently, it’s the parking spots that have everyone surprised, proving to be the better investment.
More and more buyers are saying they don’t want a parking space. Who can blame them? At an average price of $40,000, it seems more like a financial no-no rather than something that can add value to your real estate portfolio.
In 2007, parking spots averaged a sales price of $27,000. Today, 2015, those averages have jumped a whopping 48%!
Parking values are certainly rising faster than condo prices by a fairly large margin.
Many have debated the idea of just buying available parking spaces in buildings as an investment. Unfortunately for them, that’s not something you can do without purchasing a condo in the building itself. And if you’re buying pre construction, most builders reserve parking spots for those purchasing 2 bedroom units and larger. Condo corporations also do not allow the trading of parking spots and lockers to those who do not own a property in the same building.
Its only getting worse. With more and more developers pushing out projects with fewer and parking spaces available, you can expect the price of parking to continue to surge.
Having a parking spot attached to your condo unit is a hot commodity and definitely makes selling the unit a lot easier when the time comes.
Ilan Joseph is a Real Estate Broker with Sutton Group and is co-founder of a 10-person award-winning Toronto, Thornhill and Vaughan real estate team.
For over 11 years, Ilan has provided more than 1550 buyers and sellers valued advice and service, enabling them to reach their real estate goals.
He’s kind of like the Bruce Willis of real estate.