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What’s your parking spot worth?

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Throughout Australia, many people are willing to pay a little extra when buying a house with modern conveniences such as air conditioning or a pool. Similarly, houses on large blocks of land generally attract a higher price due to the appeal of extra space or the possibility of subdivision. But are Aussies interested in paying more to ensure a spot for their car?

A recent Lendi survey of 1,389 Australians found that 41.1% of people are not willing to pay any extra for a home with parking facilities.

In this survey, respondents were posed with the question “How much more would you pay for a home with great parking facilities? i.e. a secure double garage, extra parking spaces, good driveway…”

The real cost of not having your own parking spot

While a large sum of those surveyed were not prepared to pay the initial extra outlay for a home with additional parking facilities, it could be that they end up paying more for parking in the long run (particularly if they live in or close to the city centre). RACQ’s parking report for 2017 listed Brisbane as the place with the most expensive short-term parking in Australia, with the number of outlets with a max rate of $89 tripling from the previous year.

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Melbourne was slightly better, but the daily maximum for long-term council parking (4+ hours) is still $60. Sydney has an average of just 12.2 parking spaces per 100 workers, with many turning to privately owned parking complexes for a place to put their car for a fee.

Others are turning to sites such as Gumtree and Parkhound to find a spot to rent long-term or make money by renting out an unneeded spot to someone needing one. The sites allow people wishing to rent a spot to browse through a selection of options, while people with extra space are able to figure out how much their spot may be worth and rent it out accordingly.

If you choose to purchase a property without a parking space in the inner city, while owning a vehicle, it might end up costing you more in the long run. The costs of a monthly parking space rental can quickly add up. Renting a secure car space in Brisbane CBD on a monthly basis through a site such as Parkhound will set you back around $400-$500 per month. This number can vary, but at $450 per month you’re looking at spending more than $5,000 a year on parking.

According to realestate.com.au, properties with parking facilities in inner-city Melbourne generally sold for more than $50,000 more than properties without.

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1 in 10 Aussies willing to cough up $50K more for parking

Although many Aussies aren’t keen to pay extra for a property with parking, an equal amount are willing to spend some serious dosh to ensure they have a space for their car. 41.1% said they would pay $10,000 or more for a property with parking facilities, with 10.2% happy to pay $50,000 or above for it.

One interesting trend in the data showed that the percentage of people willing to spend $10,000 or above on parking facilities increased with each generation. While just 38.6% of Generation Y would spend $10,000 or more on parking, this percentage increased to 40% for Generation X. A whopping 47.4% of those aged over 55 were willing to spend $10,000 or more on a place with parking facilities.

People from NSW were least likely to want to spend money on parking facilities, with 49.2% answering that they’d pay no extra for parking. Victorians were the most interested in the idea, with 65.7% saying they’d fork over money for a spot. This result was closely followed by 65.3% of surveyed Western Australians, and 62.6% of Queenslanders.

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parking-state-comparision

The number of people willing to spend $50,000 or above on parking facilities was relatively high at 10.2%. That means more than one in 10 people are willing to pay $50,000+ for a property with parking.

The other perks of onsite parking

Purchasing a property with additional parking facilities could also end up being a beneficial choice if you have multiple vehicles or if a boat, jetski or caravan seem like a possibility on the horizon. This extra space could also allow for the storage of extra cars when a teenager gets their license, or a place for visitors to park when they come to visit.

For warmer areas, parking facilities can also protect vehicles from the harsh summer heat, storm damage and hail.

While 41.1% of people stated they were unwilling to pay extra for a car space, 58.9% indicated they were, with varying monetary amounts deemed an acceptable cost. This data shows that the majority of Australians are willing to pay more for the security that comes with having a parking space or facility attached to their property.

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Important legal stuff

COMPARISON RATE WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years.
Lendi is the trading name of Lendi Pty Ltd, a related body corporate of your licensed credit assistance provider, Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence Number 442372). We will never sell your email address to any third party or send you nasty spam, promise.
EXAMPLE: This example is current as at 20th October 2016. A Click Loans Online Principal and Interest Loan of $150,000 over 25 years has monthly repayments of $767. This is calculated based on the interest rate of 3.69%, comparison rate of 3.69%, upfront fees of $0 and annual fees of $0.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
Lendi is a privately owned and operated Aussie business. Our mission is to provide Aussies with the right experience when choosing a home loan from our panel of major and non-bank lenders including Click Loans which is a wholly owned subsidiary of Auscred Pty Ltd and a related body corporate of Auscred Services, your credit assistance provider. Although Lendi compares over 1600 products from over 30 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 40% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors. We have an independent and founder led board.
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