I am just curious, why invest in parking spaces?
Oh lol - I own a condo adjacent to the lot where they’re being sold - I would like to add it.
I dunno...snow removal? Insurance? Sealing? Cleaning? Striping? Resurfacing? Maybe those are all included in the HOA dues? Might be an excellent investment, you are in Chicago after all.
In fact I like it the more I think about it. Do you have to own a unit to buy a space? I assume yes, but maybe the lot is not part of the HOA? Could be an interesting way for a low-budget investor to get started.
@Maria Bocanegra In Boston, parking stand-alone spaces are sold on MLS. In the last 6 months, there were 8 sold ranging in price from $45,000 (Chinatown) to $335,000 (Back Bay).
I never thought about the investment angle. I suspect the best use is as an add-on for a nearby condo.
@Charlie MacPherson those pricing for how many parking spots ?!
@Yiftach Ilyov Those were all for ONE parking spot. It's supply (extremely low) vs demand (extremely high).
@Charlie MacPherson that's insane !
If a "tenant" pays on average 2.5$/hr for 20 hours a day for 365 days a year it's $18250 yearly. If you got the spot for 40k that's some return ..
@Yiftach Ilyov Hourly parking in garages in downtown Boston can run $35.00/day. Monthly rates are well over $500.00.
You're right that you could use that option, but for those who have sufficient cash, buying in the right spot can be a nice luxury.
There are many reasons I have ordered my life in such a way that I stay out of Boston. Parking and traffic are at the top of the list!
@Maria Bocanegra , the closing cost for buying a parking spot is very similar with the closing cost of a home. You'll pay city/county/state stamps, title fees, etc. Call a title company and they will let you know exactly how much it will be.
Regarding investing in a parking spot, it all depends on location. If you are in a neighborhood that doesn't have parking spots at all, you will be doing great.
I do have couple clients that have bought multiple condo units with parking spaces in Downtown and for the last few years they could not rent them out, as most of the new tenants don't have cars, they use uber and public transportation.
In other words, buy for yourself a spot and do research on parking in your area to know if you should buy extra spots for investment purpose.
Good luck to you!
@Maria Bocanegra Good advice so far. The same title process is used to acquire this type of real estate. It should have its own legal description and tax account.
There will be a need to review condo docs to answer your other questions -- can the space be deeded separately, are spaces assigned a percentage interest, charged separate dues, etc.
Parking spaces in major cities are very good Investments. The returns are typically a little lower 4-6% and you typically cannot get financing but the only costs are HOA costs which typically cover repair costs etc.
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