Pros & Cons of selling a condo parking spot. Best Toronto real estate agents near me

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Discover the untapped potential of selling your condo parking spot in Toronto! Karen dives deep into the lucrative pros and cons of selling your single parking spot separately, especially in bustling downtown areas. 

From significant profits to potential market limitations, get all the insights you need to make an informed decision. 

Whether you're contemplating selling or just curious about the market, this video is your ultimate guide to navigating the complexities of condo parking spot sales in Toronto.

🚗 Why Watch?

- Uncover the potential profit range for parking spots in Toronto.

- Learn how selling your parking spot could reduce your condo fees.

- Understand the implications for future sales of your condo.

- Get tips on navigating the sale process, from checking if your spot is deeded to understanding HST implications.

🔍 Key Takeaways

- The demand and location can significantly affect your parking spot's selling price.

- Selling your parking spot can offer extra savings on condo maintenance fees.

- Consider the future attractiveness of your condo without a parking spot.

- Strategies for dealing with the potential need to repurchase or rent a parking spot.

Thank you for watching!

00:11 - pros of selling a condo parking spot

00:17 - average price of a condo parking spot in Toronto

00:22 - factors influencing the price of a condo parking spot

00:49 - cons of selling a condo parking spot 

1:34 - what you need to know if you are selling a condo parking spot

2:01 - is there HST tax when selling a condo parking spot

2:28 - closing costs for selling a parking spot

Hi everyone, it's Karen from Toronto!

Today, we're diving into the pros and cons of selling your condo parking spot, especially in downtown Toronto where having a car might not be a necessity.

Let’s start off with the pros.

First, selling your parking spot could mean a significant profit since most spots in Toronto range between $80,000 to $120,000. The price is influenced by a number of factors such as the demand, the parking level location in the garage, and other factors such as parking spots that have built-in EV chargers. Another benefit to consider is that selling your parking spot lowers your condo maintenance fees, because part of your fees goes towards maintaining your parking spot. Thus, selling your parking spot will allow extra savings off of your monthly condo fees.

With most decisions though, there’s some cons to consider as well. We want to consider future sales implications because without a parking spot, your condo might be less attractive to buyers who need a car. This potentially limits your market, especially if you're outside of walkable or transit-friendly areas. Also, repurchasing a parking spot in the future can be tough due to limited availability in high-demand condo buildings. This is because most developers are creating much fewer parking spots compared to the number of condo units in a building. With that being said, renting a parking spot in your building is a viable interim solution. Typically you can find ads for parking spots available in the condo by checking the building's website or bulletin board.

Now, if you're ready to sell your parking spot, here’s what you need to know. First, ensure your spot is deeded, which means the spot is registered on your title ownership. We want to ensure it’s not just an exclusive use parking spot that runs with your condo unit because exclusive use parking spots cannot be sold on their own. Secondly, check with property management whether parking spot sales are restricted to building residents, which is common for security reasons.

From a financial perspective, remember to account for the 13% HST tax in Ontario when you sell your parking spot separately on its own. As a seller in Ontario, you'll have to remit the 13% HST tax to the CRA (Canada Revenue Agency), so adjust the sales price accordingly by making sure you either negotiate for the buyer to pay the 13% HST on top of the purchase price, or simply deduct the 13% from the purchase price. Also, budget for closing costs, including legal fees since a lawyer is required to transfer the title to the new purchaser.

Now for those of you looking to purchase a parking spot, check the description box for a link that reviews helpful tips on purchasing costs.

Thank you for watching! If you’re looking for personalized advice on achieving your real estate goals, feel free to contact our team and we’d be happy to assist you.