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Toronto Condo Fees: How Much is Parking Worth?

Toronto Condo Fees: How Much is Parking Worth?

Parking is considered a necessity for many buyers looking at condos for sale in Toronto . Buyers with cars often see onsite, covered parking as necessary not only for the convenience factor and avoidance of harsh Canadian winters but because it’s perceived to be better value than renting and that it will help with re-sale down the road.

Here’s the thing–there’s a market for every type of Toronto condo. Many Toronto condos sell without parking with no problem and owning is not necessarily cheaper than renting a spot. It really depends on the specific Toronto condo in question (their parking sales prices and fees) and your own financial situation (how much you’re able to put down on a property). Sometimes it’s a great deal. Other times, that parking spot is a money-guzzler.

There’s no one-size-fits-all advice we can give to buyers who are deciding on whether or not to buy a condo with parking but we are advising that you think about it. Do the math upfront, particularly if you don’t need a spot for personal use, as it will add a sizeable amount to your monthly carrying costs.

Let’s take look at some comparative fees for owned versus rented parking spots. In the following condos we’ve pulled as examples, you’ll see that the picture changes by building.

Toronto Condo Fees: What Does Parking Really Cost?

condo-parking-rent-vs-buy

condo-parking-rent-vs-buy

Now, let’s take a closer look at the individual costs you need to consider in order to determine whether it’s best to rent or own your parking spot.

Initial Purchase Price

First, consider the initial purchase price. When buying Toronto condos for sale, the cost of parking is included in your initial purchase price, if the unit comes with parking, and so it’s not always clear how much the spot itself costs. A parking space can cost anywhere from $20,000 to $50,000; we see the higher end frequently in luxury, hotel-style condos.

Here’s a sample of recent listings for condo parking spots, all in covered garages, to give you a sense of the price range. Not surprising is the fact that, in most cases, the closer you get to the downtown core, the higher the cost of parking.

Building Asking Price

Atlantis at Waterpark City, 231 Fort York Blvd $27,500

Liberty Place Condos, 150 East Liberty Street $35,000

West One Condos, 11 Brunel Court $38,000

Horizon on Bay, 633 Bay St $48,500

Casa Condos, 33 Charles St E $49,000

Mortgage Interest on that Purchase

Assuming you’re not paying for your condo in-full, you’ll have to factor in the mortgage interest on the additional $20,000-$50,000 loan over the lifetime of the mortgage to determine the true cost of parking. There are many mortgage online calculators that will show you the cost of interest over time.

The good news is that rates are incredibly low right now and so you’ll be paying off principle at a faster rate. But make no mistake, it does impact your monthly expenditures. An extra $35,000 on your purchase price will cost around $160/month additional on your mortgage payment at today’s rates. At the top of the scale, a $50,000 spot adds an additional $229/month to your mortgage payments.

Monthly Maintenance Fees

Our recent study on the true cost of condo maintenance fees revealed that parking maintenance fees are on average $43/month in Toronto. That fee could be less or it could be substantially higher–as high as a whopping $148/month.

condo-parking-fees

condo-parking-fees

Add that to your monthly mortgage payment and many condo owners are paying $200-300/month or higher for parking. True, you’ve added equity to your home value but strictly from a monthly affordability standpoint, renting can be cheaper in some buildings. It’s a cost that’s particularly important to think about if you don’t have a car and don’t need the spot for personal use.

Get the Facts to do the Math

Soon, you’ll be able to find out the average cost of parking maintenance in your building or a building you’re thinking about buying in on our website. Here’s a sample from the Toy Factory :

ToyFactoryCapture

ToyFactoryCapture

Sign-up for free as a condos’ Insider and in the coming weeks, we’ll be loading new information for over 600 Toronto condo buildings. You’ll gain access to historical maintenance fee trends by building and by neighbourhood including a breakdown of fees for parking and lockers. This is in addition to our unique and accurate price per square foot data and specific unit size measurements that are already available to our condos’ Insiders.