How To Evaluate The Price Of A Parking Space

Image source: Chris Yarzab via Flickr

When you buy a new condo, you may have an opportunity to purchase one or more parking spaces. Parking can be an good investment. Not only do parking spaces appreciate just like real estate in dense urban areas, but having parking available can also make it easier to sell your condo.

These questions can help you evaluate the value of a parking spot:

~ How long will I own this home, and what would it cost to rent a space instead?
~ What are the condo fees for the space?
~ Can I self-park, or do I have to call for my car?
~ Is the space available to me 24/7?
~ Will my space be covered or uncovered?
~ What additional property taxes will I pay?
~ Are there business-district fees?
~ Can I sell the space separately from my condo, and does the buyer have to live in the building or in a particular neighborhood?
~ If I don’t need the spot, can I rent it? What are spaces renting for and how strong is demand for them?
~ Are there any public-transportation projects slated for the neighborhood that could reduce future demand for the parking space?
~ Who’s responsible for repaving and other maintenance?
~ How is the space secured: gate, manned booth, cameras?
~ Location always counts in real estate — is my spot close to the elevators and close to the entrance to the lot?

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