When buying a condo unit in Toronto or South Etobicoke, the question of whether you should also purchase an accompanying parking space can feel like an insignificant afterthought.
Once you’ve gone through all that trouble of searching, planning, financing, bidding, negotiating, and then planning your big move, a measly parking space doesn’t really end up feeling all that important. In fact, determining whether or not you should buy one can seem like a pretty straightforward yes or no question.
Do you have a car? Then yes, buy one.
Don’t have a car? Then no, you don’t need one.
But in reality, the decision isn’t all that simple — especially when you break down things like the costs, payment structure, potential recurring cash flow from renting your parking space out, and what to do if you’re buying the condo as a real estate investor.
To help you decide on what’s right for you, let’s take a deeper look into when it’s more beneficial for you to buy a parking space with your condo and when it’s better to steer clear of buying one.
Need a hand finding the right condo – with or without parking? Call or text me at 647-239-7587 or send me an email at melissa@southetobicoke.com to get started.
A Few Basic Considerations
1. Availability And Costs
When you buy a condo unit, most buildings in Toronto and South Etobicoke will include an option for you to buy an accompanying parking space. However, that doesn’t necessarily mean each unit is allocated one designated parking space.
In fact, in the garages of almost every condo building in Toronto and South Etobicoke, there are actually fewer parking spaces than condo units, which means competition for parking spaces between residents can be tough.
Plus, you’ll have to factor in the additional costs associated with owning the space. For instance, there will most likely be extra taxes and monthly maintenance fees that come with owning your own parking space, which are recurring costs you’ll need to keep in mind when you’re budgeting for your new home.
2. You Might Not Actually Own Your Parking Space
This one can be a bit of a confusing sticking point. When buying your condo and accompanying parking space, it’s important to determine whether or not the parking space is actually deeded to you or deeded as a separate property.
When you make an offer to buy a condo, you’ll receive what’s known as a Status Certificate for the unit. Among other various details, it will clearly state whether or not you actually own your own parking space, which can be hidden away somewhere down in the fine print.
Don’t worry about having to sort through your Status Certificate to find that information, though. Your Realtor® should know exactly where it is on the document and let you know right up front what the deal with parking in your new building is.
3. Are You Allowed To Rent It Out?
If you’re planning on purchasing a parking space in your condo with hopes of renting it out to earn some extra cash flow, you’re onto a good idea — especially knowing it’s most probably your condo building has fewer parking spaces than units. However, not all condo buildings will allow you to rent individual parking spaces.
Parking space bylaws change from building to building, so it’s vital you check in with your condo board about whether you’re able to rent out your space or not before you consider buying your parking spot.
It’s also important to keep in mind that some condo boards will allow tenant-to-tenant parking space rentals but no rentals between tenants and non-tenants. Most commonly, this rule is to do with security and keeping track of who is entering your condo building.
However, other condo building associations either don’t have defined bylaws or don’t allow renting parking spaces at all. Obviously in this case, if you don’t plan on using your parking spot personally, don’t buy the spot — otherwise, you’ll risk being stuck with it indefinitely.
Not super familiar with West Toronto and Etobicoke? Check out these neighbourhood guides for a crash course on some of the top communities in our neck of the woods!
- New Toronto – Bringing Youthful Energy to South Etobicoke
- Long Branch – Etobicoke’s Lakeside Gem
- A Guide to Alderwood Real Estate
How Much Can You Get For Your Space?
If your condo building’s bylaws allow you to rent your space out or actually sell it outright, you’ll probably want to know just how much you stand to profit from doing so before you make your initial investment in the space.
On average, a parking spot in Toronto costs about $150/month to rent out or $30,000 to purchase completely. But, like anything, there are exceptions. For example, a parking space in the luxe neighbourhood of Yorkville was once sold for $100,000 — more than triple the city-wide average sales price for a parking spot.
Obviously, you can’t always bank on your parking spot selling for six figures. Calculating what you can realistically expect when purchasing, renting out, or selling your parking space really depends on the location of your space.
Here are a few general ballpark examples of what parking spaces cost in various condos and neighbourhoods across the West End:
The Building: Eau Du Soleil
Neighbourhood: Humber Bay
Cost to Purchase Parking: $15,000
The Building: Scoop Condos
Neighbourhood: The Junction
Cost to Purchase Parking: $38,000
The Building: The Roncy
Neighbourhood: Roncesvalles
Cost to Purchase Parking: $50,000
So, when it comes to deciding on whether or not it makes sense in the long-term for you to purchase your spot and then sell it later on really comes down to studying the market and gauging buyer demand.
Are you still searching for that ‘pinch me I’m dreaming’ condo listing? Have a look through My Featured Listings page.
Tips For Investors
If you’re a real estate investor and plan on buying a condo unit as an income property, this adds another layer of consideration on whether you should also purchase the accompanying parking space or not.
Our advice? Put yourself into the mindset of your prospective tenant. Would your condo unit’s future tenant most likely have a car and require a parking space, or is it more likely they wouldn’t?
Remember, many Torontonians forgo cars in lieu of public transition or cycling, especially those who live in more densely populated urban areas. If your condo building is located in the city’s busy downtown core, there’s a good chance your target tenant demographic won’t need a space to park their car — let alone actually have one.
However, if your building is located in a more family-friendly part of town and many of the building’s tenants are families with one or more children, then it’s more likely they’ll need a space to park a car.
Depending on the size and location of a condo, they can make for a perfectly comfortable environment to raise a family in — but they aren’t without their unique challenges. See what we mean by reading about The Pros And Cons of Raising Your Kids in a Condo.
Additionally, if your building is located near major highways or roadways, it’s also likely that your condo unit will attract tenants who regularly commute via car, and will most likely need a parking space for their vehicle.
At the end of the day, it’s well worth it to spend the time considering the needs of your ideal future tenants and then basing your parking space decision on their lives. Don’t make the mistake of buying a condo space based on what you might need or prefer — if you’re an investor, it’ll be much more lucrative for you in the long run if you think like your tenants today.
Need a hand finding the right condo – with or without parking? Call or text me at 647-239-7587 or send me an email at melissa@southetobicoke.com to get started.
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