Buying a parking space in my development

Blackrock1 said:
Disagree Gordon we bought and sold a second place in our old complex much further from town and it was either 12 or 15 can’t recall
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Did it have the same restrictions as this one?

i.e. had you already sold your apartment plus one space, were you no longer allowed to use it, and could you only sell it to other owners within a 32 unit complex?

My sense is that a lot of posters are comparing apples and oranges; the circumstances of this case are very specific and it’s an extreme example of a buyer’s market. This is a fire sale. The more I think about it, I wouldn’t pay a penny more than €5k unless having two spaces would somehow enhance the value of my apartment significantly in advance of a sale.
 
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Gordon Gekko said:
Did it have the same restrictions as this one?

i.e. had you already sold your apartment plus one space, were you no longer allowed to use it, and could you only sell it to other owners within a 32 unit complex?

My sense is that a lot of posters are comparing apples and oranges; the circumstances of this case are very specific and it’s an extreme example of a buyer’s market. This is a fire sale. The more I think about it, I wouldn’t pay a penny more than €5k unless having two spaces would somehow enhance the value of my apartment significantly in advance of a sale.
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Same situation save it was a larger complex
 
I would estimate that a parking space would add about €20k to the value of an apartment in central Dublin.

That equates to a gross yield of 9% if the space could be rented at €150pm; 6% @€100pm.
 
Hi Freddie

I would be careful here about seeing the seller as an opponent to be exploited because of his limited market.

If you need and want the space, you should offer him a fair price. A price where both of you feel happy.

There is every chance that one of the other owners will wake up and outbid you. There is also the chance that the buyer of the apartment might wake up and buy the space.

I would imagine that when you eventually come to sell your apartment you will recover your money easily. And there is also the possibility that someone else in the block will buy it from you to help them sell theirs.

Don't squeeze the last penny out of him.

Brendan
 
Sarenco said:
I would estimate that a parking space would add about €20k to the value of an apartment in central Dublin.
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I must say that is a lot closer to the €5k other people were thinking of.

If I had a parking space and could get only €5k for it, I might hold onto it. That would just about cover the legal costs.

Brendan
 
Gordon Gekko said:
But you said that you bought and sold a second space?

The implication being that you still owned your place.
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We bought a second space while we owned the apartment , we then sold it and sold the second space seperately as we felt we were more likely to get what we paid rather than bundling it with the apartment itself
 
Brendan Burgess said:
I must say that is a lot closer to the €5k other people were thinking of.

If I had a parking space and could get only €5k for it, I might hold onto it. That would just about cover the legal costs.

Brendan
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Exactly for 5k I'd be inclined to hold on aswell someone will want it for what it's worth at some stage
 
Freddie said:
What he paid for it, is now largely irrelevant I'd say (well I would say that). Its not an open market sale.
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You seem to have convinced yourself it's practically worthless and you will be doing the seller a favour , let's see how it goes !
 
Blackrock1 said:
We bought a second space while we owned the apartment , we then sold it and sold the second space seperately as we felt we were more likely to get what we paid rather than bundling it with the apartment itself
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And were you prevented from using the space yourself and did you have to sell the space to another apartment owner?
 
Freddie said:
Rent would be €100 - €150 a month in the area.
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That's €1200 to €1800 a year. Rental yields for apartments in D6 are about 6%. Assuming the same yield for a parking space gives you a value of €20k to €30k on some kind of economic basis. I think this is what you were looking for.

When it comes to negotiating, two things to consider:
  1. He's in a weak position as there is a limited pool of buyers
  2. At the same time you may may be enhancing the resale value of your apartment quite a bit. Apartment plus space will give you more bidders than apartment alone.
Brendan Burgess said:
I would be careful here about seeing the seller as an opponent to be exploited because of his limited market.

If you need and want the space, you should offer him a fair price. A price where both of you feel happy.
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I paid the vendor of my house 70% of what he paid for it.

Was I exploiting him? Of course not. It was an open market and we reached a market price.
 
Brendan Burgess said:
Hi Freddie

I would be careful here about seeing the seller as an opponent to be exploited because of his limited market.

If you need and want the space, you should offer him a fair price. A price where both of you feel happy.

There is every chance that one of the other owners will wake up and outbid you. There is also the chance that the buyer of the apartment might wake up and buy the space.

I would imagine that when you eventually come to sell your apartment you will recover your money easily. And there is also the possibility that someone else in the block will buy it from you to help them sell theirs.

Don't squeeze the last penny out of him.

Brendan
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Hi Brendan,

In my very 1st post I wrote the following -

"I know it's price is how much I'm willing to pay etc...how would I go about getting a market value though"

So I'm looking to pay the market value.

Someone came back with €5k - €10k and the user Gordon backed this as he had the same thinking as me, in that there are lots of restrictions with this space.

These same restrictions will apply to anyone who the buys space. The same as it does for the current seller.

The space has been for sale for a year or more, as far as I know. I just recently became aware of it. So its there right now for any of the other 31 owners to buy, including the people who bought the apartment.

Someone may well "wake up" as you say. As of now no one has. I really dont know what point you are making here. I'm fully aware it's a market containing 32 possibly buyers. It always has been and continues to be.

1 ) Where do I say I'm looking to exploit the seller or squeeze ever last penny out of him? I'm not responsible for other peoples comments on this, if that's where you are picking this up.

Stating it has a restricted market is so that people are comparing like for like and are aware of this markets conditions.

2) You say when I eventually come to sell the apartment. Why do you state this as an inevitability? I've spent a lot of money making my apartment my home. The parking space is for my partner. It's not to rent or to improve sale price or all the rest of the assumptions you and others are making. I'm buying it to use for my own use.
 
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Brendan Burgess said:
I must say that is a lot closer to the €5k other people were thinking of.

If I had a parking space and could get only €5k for it, I might hold onto it. That would just about cover the legal costs.

Brendan
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Brendan, €5k legal costs to sell a parking space....I wont be asking for solicitor recommendations
 
Blackrock1 said:
You seem to have convinced yourself it's practically worthless and you will be doing the seller a favour , let's see how it goes !
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I dont think €5000 to €10000 is worthless by any stretch. (Not in my working class world anyway)

As you say we will see how it goes....but I wont be paying the astronomical prices you seem to have convinced yourself it's worth though either !!
 
Step one .... find out what the seller is asking.

Step two .... do your sums and see do the numbers add up. If they do, go for it and good luck to you. If they don't, forget about it.
 
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