Is a car parking spot a non-negotiable when buying inner suburban property?

“Car space on title?” is not a question that is asked in the country or the outer suburbs.

It is, however, common in the inner-ring and sometimes strikes in the middle-ring locations.

Most outer suburbanites would wonder why this is even a question. Where would the car be parked otherwise? And who would be OK with their car out in the street?

But this is a real conundrum for inner-ring inhabitants.

Our state capitals have small allotments that were founded in the 1800s. Back then, residents didn’t have cars. Small laneways were in existence for the night-can man to collect our toilet waste.

These days, many of these are cobblestone brick and they are narrow. We ask a lot of them to enable our cars to be housed in our garages built at the rear of our small terraces and Victorian cottages.

For plenty of these laneways, vehicle access is questionable at best. Turning circles are tight, and residents are often loathe to give up their available back yard space for a car. Navigating these little laneways can be a challenge too, particularly for those who choose large SUVs. Gone are the days of a Mini Minor, (or even a Morris Minor) representing the typical city car.

The move from two cars per household to one car per household is evident in these inner-ring suburbs now. Work from home arrangements and reliable public transport have facilitated this shift.

An awareness of environmental responsibility is another significant driver for inner-urbanites’ decisions to swap out two-car households for one-car living.

Those who have elected to utilise street parking face all kinds of unpopular challenges. Theft risk, malicious damage, exposure to horrible weather during the walk from car to home, neighbour disputes, and basic inconvenience are some of the immediate issues that come to mind when contemplating a home without a space on title for the car.

But for those who do opt for off-street parking, the financial consideration is real. The cost of a car space on title can range from $100,000 to $1,000,000 depending on location. This differential can represent an entire internal upgrade, or a superior suburb. It’s not as easy a decision as a car-lover would imagine.

For the lucky ones who manage to secure a property with off-street parking, the reward is genuine.

The cost differential is represented by the land. Not only does a greater land parcel offer a heightened capital growth opportunity, but the scarcity of the car space itself in the inner-urban environment represents scarcity. Scarcity is a significant capital growth driver when it comes to property.

Does it pay to have parking?

While it costs significantly more to secure an inner-ring property with a car space on the title, the additional cost is not necessarily in vain. When held for the long-term, properties with car spaces on offer will fare well when subsequently sold.

One key question arises: is it better to opt for the property with a car space on the title, or is the cost-effective benefit of upgrading other aspects of the property a bigger win? Or is saving substantially on the purchase price the better cost-benefit outcome?

The answer is not simple. It comes down to numerous considerations. First and foremost; do you need a car space? Is this a long-term home? Could you secure a significantly superior property if you forgo the car being on your land?

If the property is an investment purchase, it pays to understand what the local tenants favour, (and will pay for) too.

But more importantly, it’s essential that a buyer scopes out the availability of street parking.

Not all streets are created equal, and not all on-street parking arrangements work.

I have secured many properties for clients over the years that don’t offer parking on title. But what they all have in common is the availability of on-street parking during the day, the evening and on weekends.

It’s imperative to scope the street and the neighbourhood at varying times. Understanding permit parking permit options and local parking restrictions is also critical.

Nobody wants a scenario where they can’t see their car from their front porch. Nor do they want to be feeding a parking meter during business hours.

While inner-city living isn’t for everyone, those who know it and love it will understand how to navigate street parking. I often use the phrase, “when in Rome.”

A property isn’t a dud if it lacks a parking space on title, but I do have concerns when on-street parking is prohibitive.