Buying a condo without parking is actually a great way to save money. While parking is factored into the costs of many condos. Parking in Toronto is valued at anywhere between $70,000 to $165,000 for the parking spot. Imagine adding that cost to the price of your condo and paying a mortgage on it.
So let’s test our theory, if I take a parking spot cost of $165,000, at an interest rate of 3.94% and amortized over 25 years, that parking spot would cost you $862.58 per month. And throughout the life of this mortgage you would have wasted, I mean paid $93,771.41 in interest fees. You’re probably wondering why I used $165,000, well there is a pre-construction condo project in midtown Toronto currently selling parking spots for $165,000. It’s an outrageous amount but this is where the market is going.
Let’s use another price scenario, what if you only paid $80,000 for the parking spot, at an interest rate of 3.94% amortized over 25 years, that parking spot would cost you $418.22 each month. Throughout the life of this mortgage you would have wasted, I mean paid $45,465.05 in interest fees.
So how does a rental of $180/month sound now?
For an example of a real life example of this rental parking, check out this townhouse at 11 Broadway Ave.