Five Reasons Why a Parking Space Needn’t Be Important

garage-icon_106250123

There were 263,245 registered motor vehicles in the Newcastle and Lake Macquarie district and 202,707 in the rest of the Hunter Valley in 2014 according to the Australian Bureau of Statistics.

In Australia, we love our cars and you might be forgiven for thinking a parking space is essential for your rental property. If parking is a premium in the area, having a parking space can be a massive benefit to some tenants.

However, parking may not be as much of an issue as you first envisage. If the property is close to public transport and amenities and with more people cycling, a parking space may not be a necessity for some tenants. In addition, properties located close to universities will attract students who are happy to walk or cycle for cheaper rent.

Parking is something to consider on an individual property basis. Here are five points to consider when looking at a property without parking:

  1. Pay for the Parking

There may be options for you to pay for parking – and some tenants are willing to pay the extra if it means they are living in the area they want to live in. See if the local council offers resident permits or there are alternative parking arrangements nearby. The additional cost of this can then be either factored into the rent or highlighted to tenants as an additional cost at their expense.

  1. Alternative Parking

When you’re looking at properties which don’t have parking, check for parking restrictions in the neighbourhood. Some tenants don’t mind walking to their car elsewhere if it means cheaper rent in a desirable suburb.

  1. Get Yourself a Better Deal

Because they are in a prime location, some new apartment developments haven’t enough parking for all residents – this enables the developer to charge more for the apartment with the privilege of a parking space. Consider what the potential parking options are or whether the location is suitable for a carless tenant, and you may get yourself a bargain property purchase.

  1. Better Capital Returns

This one does require you to do your research and consider the risks. Look at the capital growth of an area and whether the property is realistically rentable; a studio flat in a prime location with no parking may actually be a better investment in the long run than an urban unit in a less desirable area with parking.

  1. Changing Attitudes

The Government is pushing us to be more ‘green’ with our transport options by encouraging us to look at using public transport or cycling. Indeed, some people are making lifestyle choices to live close to work and amenities and do away with the cost of a car all together, choosing to spend the money saved in other ways.

When considering parking it basically comes down to doing your research, speaking to the experts, looking at what you can afford and deciding on what risks you’re prepared to take.

Having been in business in the area for over 40 years, we are in the enviable position to give you honest information to help with the decision making process and help you realise your property investment dreams.

Our talented and friendly team is constantly looking for new and innovative ways to ensure your real estate experience is exceptional. This is why we are one of Newcastle’s longest established real estate offices.

Give ring us on 02 4954 8833 or call into our office – we’re here to help.