Apartments - Buy the Car Park Too!

There has been a bit of discussion lately about buying apartments as investments and whether you need to buy a car park to go along with it.

Car parks can be big business. A few months ago the New Zealand Herald wrote a report about car parks in Auckland's inner city selling for as much as NZ $100,000.  The pricing of car parks is a reflection of the demand for living in the inner city, and the number of inner city apartments sold.

One of the arguments that agents have in buying apartments in the city is people are less inclined to use cars, like New Yorkers living in Manhattan. But I don't think we are quite there yet.  By buying an apartment without a car park (or 2) you are cutting yourself off. The Property Observer discussed this issue not too long ago.

Here's why:

Attract the best candidates:

When you advertise that you have an apartment WITH a car park, you are opening up your pool of tenants. You will get prospective tenants with and without cars who will apply for your place. You don't want to be in a position where that 'perfect' tenant (long term, responsible and nice to boot) is out of reach, because they have nowhere to park their car.  Most landlords do charge more for the convenience of a car park, but most tenants who are looking to rent in the city, understand this and would happily pay to park.

Public Transport isn't limitless

As much we all would like a public transport system that takes us wherever we want, whenever we want, it's not quite their yet. Most people still drive. It really is a minority of people who don't own cars. Yes we all want to live in an area where we can walk to work, cafes, shops and supermarkets, and living in the inner-city has those advantages, but not everyone is living there. I think it will take at least another generation before we become untethered to our cars. They still represent freedom and independence.

Don't need it? Rent it!

So you have a great tenant who doesn't need the space, don't sell it off, but rent it out. The same NZ Herald article above states that in Auckland, a park can go for $50-$100 a week, that's a great chunk of change with very little maintenance!

So what is your view, do you have an inner city apartment? Does it have a car park?  If not, has it impacted who is interested in your property?