Can I Get Parking with That?

The reality of our Condominium market here in Toronto is that most of the properties available for sale thru Developers & Builders are of the smaller variety ie./ Often times 70% to 80% of the units within a proposed building project are at or under 800 square feet in size. There are a couple of reasons for this, the first being that this is where the BULK of the market resides (ie./ for the vast majority of potential condo Buyers / especially first time buyers -- pricing and affordability are of critical importance). Secondly, these kinds of units work better as potential investments. Smaller units are easier to afford up-front, their carrying costs are more reasonable (relatively speaking) and they tend to lease for more money (on a price per sq. footage basis) than larger units ie./ where-as a large 2 bedroom unit in downtown Toronto might lease for just over $2,000.00 per month -- a smaller one bedroom may well fetch $1600.00 to $1,700.00 per month. Equally important (from an investment point of view) these smaller units will tend to appreciate better (on a percentage basis) over time. Hence, for these and sundry reasons -- the condominium marketplace in Toronto is skewed towards smaller more reasonably priced units in general.

Another thing worth mentioning at this point is that virtually all new projects have a short-fall of parking spaces in relation to the number of units they're actually building. This ratio varies -- but it too is often around 70% to 80% in relation to the number of units being built. More than anything else, this has to do with the nature of construction in Toronto and the fact that Builders do face constraints in respect to what they can and can't accomodate in terms of under-ground parking spaces. Beyond the mere physical and government inflicted constraints -- parking areas are also one of the more expensive components for a Builder / Developer to construct (which again implies limitations).

As a result of this circumstance, parking spaces in Toronto are not only getting more expensive, they are also getting more difficult to secure. In a lot of cases, Developers won't even sell you a parking space unless you spend a certain (requisite) amount and/or unless you buy a specified size of property (ie./ you won't be permitted to buy parking unless you buy a property over 600 sq. feet and/or at a price point above $350,000.00 etc....).

Although this may well help to justify and/or explain the current circumstance, my advice as a Realtor is that unless you can secure a property (large and/or small) with parking -- one really ought to reconsider the proposition. Moreover, if your budget constraints don't allow for parking (which at this point in time runs around $35,000.00 per space -- on average), my advice would be to alter your' search criteria enough to enable you to factor this element into the equation. In other words, you're definintely going to NEED parking -- so do whatever you have to do, to make sure you can secure same.

If the Developer won't play ball -- WALK. If you're mortage broker won't help you accomodate the extra payment -- WALK. If the Sales people at the site and/or your own Representative (Realtor) try and persuade you to buy without parking -- WALK.
The reality of our marketplace is that everyone drives a car -- which in essence means everyone needs a place to park. If you're ever thinking of re-selling your property (and/or investment), not having parking will probably exclude 90% to 95% of your' potential Buyers. As a resale Agent, I've had clients who hated cars (didn't have one -- would never get one), didn't eat meat and donated to various " Luddite " societies -- who wouldn't let me show them condominium resale properties without parking. And Hey! if you can't trust a pro " Luddite " -- on an issue such as this, you can you trust?

In any event -- even if you don't actually need parking during your' own tenancy and/or ownership of the property, you can always lease it out and put that stipend against your' monthly maintenance fee costs. At least that way -- the parking will be there when and if you go to re-sell.

If none of this matters to you, you should also realize that without parking -- there is virtually no way you'll ever be able to solicit and/or realize multiple offers on your' property (some where down the road) no matter how crazy and/or frenzied the market might get. Hence -- in a very real way, not having parking could cost you as much as 10% to 20% in terms of potential loss(s) upon resale (ie./ the difference between getting 10% more than asking -- as opposed to 10% less than same).

Finally, if you're still not convinced, realize that within the past 10 years or so (in Toronto), condominium prices have probably doubled on average. Parking prices on the other hand have (within that same period of time) gone up by a factor closer to 5 or 6 times what they were at in 1998 / 1999 ie./ I can easily remember parking going for $5,000.00 to $7,000.00 at that time -- as opposed to the average nowadays of closer to $35,000.00 (and closer to $45,000.00 in our harbourfront). Hence, if you really want to make some money in Real Estate -- you probably ought to be buying parking instead of condominiums.

Just so you know -- Ive already asked, and not only are the Developers not amenable, I think it's against condominium laws (by-laws and/or codes) to sell parking to non-owners and/or residents.

Hence -- if like a lot of people you're on the fence re: this whole parking issue, and are contemplating fore-going that crazy $35,000.00 expense, do yourself a favor and at least re-think the issue. It's one thing if it's truly impossible and/or un-fordable, but failing that -- GET THE PARKING! Yah --it'll hurt when you're doing it, but beieve me -- it'll hurt so good when you're re-selling it.

" Zoom, Zoom, Zoom! "