Real Estate Key: The Coveted City Parking Space

I recently read an article about a parking space that sold in Hong Kong for nearly $1 million. Wow! Luckily DC parking spaces don’t go for quite that much.

I recently listed and sold a parking space so I wanted to share some of the things to keep in mind if you’re in the market to buy or sell one.

If you’re looking to sell:

• Is your parking space separately deeded from your home and does it have its own tax ID number? If not, you might not be able to sell your space separately from your home.

• If you have a mortgage on your real property, does it include your parking space? If you do you will need to refinance your loan so that your parking space is no longer included.

• Are there restrictions on who you can sell to? For example, many condo associations will only allow parking spaces to be sold to other owners in the building.

• Have you thought about how selling your parking space separately will affect the value of your home?

If you’re looking to buy:

• Do you have the capital to buy a parking space? You can’t get a mortgage on a parking space alone.

• If you have a specific area in mind, do you know what buildings in that area have separately deeded parking spaces? A Realtor can help you see what’s available and understand the market.

• If you buy a parking space and plan to rent it in the future, do you know the rental restrictions of the condo association? It’s important to know if the condo association has regulations on rentals. For example, if rentals are only allowed to other owners in the building.

Parking spaces in areas that don’t have a lot of parking are coveted, so it’s important to talk to a Realtor and lender who can help you prepare for this investment, because when the opportunity arises you will need to act quickly.

Interested in purchasing or selling a parking space? Contact me for free consultation so you understand the process and your options.