What is a Parking Space Worth?
Parking spaces in homes are becoming increasingly valuable, not just for vehicle housing purposes but also for storage purposes. Families want to both store and park their cars inside their garages, whereas investors are interested in renting out their properties, selling them or even selling the house and parking space as separate components. But how exactly do they increase the value of your home? Is it because of the high demand for space and parking, or is it for other reasons?
The need for parking space
Parking spaces are in very high demand, especially in areas close to the CBD. This is because such a large population either live or work in the city and have few options to park that are close to their work or residence. City councils in Sydney and Melbourne are actually decreasing the number of current parking spaces they have available to the public, in order to reduce the traffic congestion that occurs during peak hours. There are parking spaces available in car parks within the city, however you have to be prepared to spend a pretty penny for the day. If this is a daily occurence, your parking costs will reach extraordinary heights.
Parking spaces are so high in demand that a Sydney investor sold a parking space for $400,000, the price of a house in parts of Brisbane. Public transport is a safe and cost-effective solution, however, sometimes the overall journey can take longer than it would to drive and find a parking space. By utilising the sharing economy and marketplaces such as Spacer and Parkhound, you can rent a parking space long-term close to your desired location, thereby saving you the hassle of circulating your building for up to half an hour, trying to find a space.
Demand for parking spaces in homes
Having garages included in your home is a great way to increase the value of your property. Families with two or more cars find it more challenging to find properties close to business precincts, and sometimes these properties far exceed the budget set for themselves. More and more homes are opting for on-street parking just outside or a few metres from their front door. Homes closer to the city benefit from having extra unused parking spaces, allowing them to rent these out to employees who need a secure space for their vehicle while at work. Some individuals are willing to separate the parking space and home, selling the space for extra income.
In Sydney, the average price for a parking space alone is around $40,000 to $60,000, which is better in the long run, as you’re only paying off the loan. If you’re buying it outright, you don’t have to worry about yearly renting payments. For those looking for shorter-term options, renting the space a month at a time is highly recommended.
Parking space vs. Public transport
Whilst Public transport is preferrable, many suburbs still don’t have their own local train stations. Although there are many bus stations available on various residential streets, buses are prone to be caught in the traffic going into the city. To further challenge matters, a lot of commuters will have to resort to walking fairly long distances in order to reach their workplaces, prompting earlier waking hours. For many, driving to work is a matter of convenience.
The value added to your home
Since parking spaces are such as valuable commodity, they are adding considerable value to homes. If you were planning to sell, having a garage or access to a parking space could potentially add more than $200,000 to the overall market value of your home. Some places without garages can get council approval to expand or even rebuild their garage in order to maximise the value of the property. If you’re not planning on selling, you can still use your parking space to earn extra money throughout the year. With Spacer, you could earn up to $4,200 every year from renting out your garage for parking or storage purposes.
Parking spaces are especially needed within the city, with the Colliers International Parking & Traffic Consultants recording the lowest number of car spaces to workers ratio in Sydney and Melbourne; only 12.2 car spaces for every 100 workers in Sydney. Spacer can help you with finding storage space and long-term parking options in the bustling city, helping to make travelling much easier and more affordable in the long run.