Parking spaces are increasingly in demand. Adding a single parking space to your home could see your property’s value soar by 5%. In areas where parking is limited, the benefits of having a parking space could be even more significant. You may need planning permission and may have to invest £10-£20,000, but the added value could be £50,000 in an expensive urban location.
Seasonal pricing can be an effective strategy for determining how much to charge for your parking space. Take into account any seasonal fluctuations in demand.
It’s no secret that parking can add significant value to a property. But rising population density is now making the humble parking space a sought after feature. In his recent column, John McGrath takes a look at what people have been willing to pay to park their car. For example, a parking space in a prime location like Sydney can fetch a couple of hundred thousand dollars, with recorded sales such as one in Elizabeth Bay for $210,000 in September 2014 and another in Potts Point for $264,000 in May this year.
Having parking included solves a problem for the property’s residents, whether they rent or own it. You may be paying more now if the property comes with off-street parking, but you’ll be able to ask for more when you sell. Therefore, parking spaces should certainly be considered when looking for a new investment property.
If strategically located, parking lots can generate generous monthly income from lease payments, and the time and cost of management and maintenance is typically much lower compared to other property types. To ensure that all tenants have ample parking for their own vehicles, there should be:
- Assigned specific parking spaces for each unit
- Enough parking to accommodate all residents
If you plan to sell your home, having a garage or access to a parking space could potentially add more than $200,000 to the overall market value of your property.