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Condo – Extra car park necessary?

Today, majority if not all new condo projects provide two car parks. However, a lot of secondary condo projects may have just one car park. If you can, buy a condo with two car parks instead of one. Statistically, majority of all households have two cars. Your wife and you each would own a car. If you say, it is ok, one car can be outside since the second car is an old car anyway, I hope you understand there are days when you need to do some shopping thus you may need to carry heavy shopping bags all the way from the place you park until you reach your condo. Imagine if it rains or the sun happened to be hot because it is MALAYSIA.

What about safety of YOU or your loved ones? What about the convenience? What about the hassle of looking for the car park? What about the times when you are rushing for time? What if you are parking outside and you are in URGENT need for a toilet? and more………

A few would then say, the prices of condos with two car parks are normally RM20,000 – RM40,000 higher. I might as well rent the car park. Statistically, typically renting a car park lot in Penang is still RM80-RM100. Low? Well, RM80 x 12 = RM960 per year. If you want to earn back this RM960 from Fixed Deposit, you need to save RM31,000 in the bank and you must NOT touch this money for years. If it is RM100, you need to save RM40,000. Do you understand why it is now better for you to buy instead of rent?

When you intend to sell, the premium would always be for condos with two car parks. You have nothing to lose but to add just a little bit to your mortgage every month. Last question. Would car park lot rental go up or come down in the future? If your answer is, it will come down, be careful of where you stay, I think the occupancy rate is coming down which is not a healthy trend for any condo project.

 

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kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.

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4 Comments

  • Hui Yi on December 1, 2013

    Strongly agree with this post. There are too much concern on safety issue, weather,inconvenience and etc when u do not have an extra car park. And, 1 additional point is, sometimes when u want to rent a car park, it doesn’t mean tat you can get one. There are many people waiting to get one as we’ll. if u rent a car park before, I’ll know what mean

    • chialih on December 1, 2013

      when i first moved to my current condo, I waited 2 months just to rent one car park and it cost me RM180 per month.

  • Jerry on December 8, 2013

    What about if you have 2 car parks and wanted to buy extra 1 for investments?

    • chialih on December 8, 2013

      Hi Jerry, the more the better. Even if you buy one for RM40,000. FD of RM40,000 gives you annual returns on RM1,200. That’s RM100 per month. If you rent out at RM120 per month, that’s already profit. There are also even fewer units with 3 car parks which makes your property a premium if you sell it in future.

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