Condo parking spots are expensive and often deemed unnecessary by many buyers. But are your clients missing out on long-term appreciation by not investing now? Erica Smith and Joy Patterson from The Condo Chicks discuss the current parking wars in Toronto.
Everybody knows that parking in Toronto has proven to be more of a challenge over the last couple of years. With the population of Toronto increasing annually, parking is simply becoming more of a concern for both commuters and condominium buyers. In a city where parking lots are being purchased every day by real estate developers to build condos, acquiring a parking space and purchasing in a condo building with ample visitor parking is becoming more and more valuable.
If you have a client who is in the market to purchase a Toronto Condo, an important issue for him or her to consider is purchasing a parking spot. With parking in the city so scarce, and developers realizing more value in parking, capitalization of this precious piece of land has begun. It is for this reason that purchasers should always attempt to purchase a condo with a parking spot as it dramatically increases the investment value of the unit upon resale.
Even if your client does not own a car there are always ample opportunities to rent out that spot. Rental rates of parking spots in Toronto can vary anywhere from $150 to $350 a month. It is to the purchaser's benefit to buy a condo that has exclusive use to a parking spot or even better a deeded parking spot as the spot can be sold if necessary.
In terms of new condo developments in the downtown core, because of the lack of space, condo builders have already either started to totally eliminate parking for visitors or if it is offered, often there is an hourly parking fee. Some older condo buildings such as 25 The Esplanade located in the heart of the St. Lawrence Market, have devoted certain levels of the parking garage exclusively for visitors, however visitors must pay per hour. This can prove to be extremely frustrating for condo owners who have frequent visitors or those who accommodate out of town guests and family.
Some Toronto condos have an abundance of visitor parking while other condos do not. A lot of condo buyers forget to ask this question with the assumption that all buildings have free visitor parking. If your client enjoys entertaining guests, be sure to find out how many visitor spots are offered in the condo before he or she signs on the dotted line.