Never underestimate the value of a parking bay, says APKF MD

When members of sectional title schemes hit a rough economic patch, they are sometimes persuaded to part with their parking bays – in perpetuity – because a bay in a satisfactory Southern Suburbs scheme can fetch anything from R60 000 to R80 000.

This drastic action should, however, be avoided, says Lanice Steward, MD of Anne Porter Knight Frank, because the value of a unit will usually depreciate drastically if it has no parking bay to go with it. As the scheme grows in value, so the lack of a bay will more and more be seen as a drawback.

Developers, said Steward, usually only provide a minimum number of bays per unit – and many schemes find that this eventually means that some cars will go ungaraged while others might have to park in areas where the weather damage could be high.

“If, therefore, you do have spare cash, there are few better investments than another garage or bay in your scheme. If you do not use it yourself you will get a rental return on it at a higher percentage than the unit itself will give,” said Steward.

Article by: www.anneporter.co.za