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September 11, 2024 | By Ignatia Belle
We’ve all been there—hunting for a parking spot for what feels like forever, and then finally, the realisation hits: wouldn’t life be so much easier if you just had your own car space? But the real question is, how much is that space actually worth in the grand scheme of your housing costs? Let’s dive in!
When it comes to buying a home, adding a car space is like adding an extra bedroom—it bumps up the price! But exactly how much value does a car space add to your housing costs? Spoiler alert: it’s a lot more than you might think. On average, in areas like Paddington or Woollahra, a single car park can make up 10-12% of a property’s total value. Imagine that—a simple patch of concrete could be the difference between snagging a great deal or shelling out way more than you thought.
But it doesn’t stop there. The type of property also matters. In high-demand, inner-city areas like Melbourne or Sydney, an allocated car space is prime real estate, and it could add up to $200,000 to your housing costs. Yep, you read that right. In fact, some standalone car parks in Sydney’s Eastern suburbs are selling for as much as $200,000 on their own. Now that’s a serious chunk of change for a bit of extra convenience.
You might be wondering: why does a car space have such a massive impact on housing costs? It’s simple: demand and supply. In dense, urban areas, parking is as rare as a sunny weekend in winter, and people are willing to pay a premium for the convenience of their own spot.
Let’s break it down further. In places like Melbourne, the City of Melbourne provides around 42,000 car spaces, but there are over 76,000 registered cars. That’s a big gap! As the number of cars keeps climbing, the value of a car space keeps skyrocketing. And don’t even get us started on parking fees—$79 a day in Melbourne’s CBD!
Now, imagine owning a home where you don’t have to deal with those outrageous fees. That’s where the added value comes in. People will pay more for homes that come with their own car park because it saves them both money and hassle in the long run. You’re not just buying a spot to park your car—you’re buying peace of mind.
So, you’re thinking about buying a property and wondering if a car space is worth it. The answer is yes, but it depends on where you’re buying. In inner-city areas, a space can add significant value to your housing costs, especially if parking is scarce.
In outer suburbs, where street parking is more available, the impact on housing costs might not be as extreme. But don’t underestimate the long-term benefits. A garage or car space in these areas could still add a nice boost to your home’s resale value, and who doesn’t love extra storage space?
Even if you don’t plan on using the carpark yourself, you can rent it out. With platforms like Share with Oscar, renting out your parking spot could earn you anywhere from $200 to $400 a month, depending on the suburb. That’s an extra income stream just from owning a parking spot!
Let’s look at a real-world example. In Melbourne, a one-bedroom apartment in the CBD with a car space can sell for $200,000 more than a similar property without one. That’s a huge increase in housing costs just for adding a little patch of asphalt or concrete.
In contrast, if you buy an apartment without a car space, you might find yourself battling it out for a spot on the street or paying through the nose for off-street parking. In the long run, investing in a property with parking space makes financial sense, especially if you plan on selling in the future.
While the immediate impact of a car space on housing costs is clear, the long-term value is just as impressive. Not only will your property be worth more, but you’ll also have the option to rent out your parking space for some extra income. Plus, if you’re living in the inner city, you won’t have to worry about parking fees ever again.
But that’s not all. A car space isn’t just about parking. You could convert it into something more useful for you—an outdoor gym, a workspace, or even a storage area. The possibilities are endless. And, of course, if you ever decide to sell, having a car space is a huge bonus in the eyes of potential buyers.
As more people move into cities like Melbourne and Sydney, parking will only become more valuable. With housing developments reducing the number of included parking spots, demand for properties with car parks will continue to rise. That means housing pricing for homes with parking will likely keep increasing.
If you are like us and don’t have the luxury of affording a home with a dedicated carpark, renting a car space through Share with Oscar can be far more affordable than renting a property with an allocated car space. In areas like Sydney, you can find monthly parking starting as low as $50/week, depending on the location. This is a fraction of the cost compared to purchasing or renting a property with a dedicated parking spot, which often adds hundreds of thousands to property prices or significant extra rent. This flexibility can save you money while offering the convenience of secured parking.
In today’s world, where parking is becoming more competitive, owning a car parking space is a smart investment. Whether you plan on using it yourself or renting it out, the value it adds to your home is undeniable.
From Melbourne to Sydney, properties with car spaces are in high demand, and for good reason. They save you time, money, and stress—and in the long run, they can even help you earn a little extra income. So next time you’re shopping for a home, don’t overlook the value of a car park. It could be the key to unlocking both convenience and financial gains.
Happy Parking!
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