Why is a Parking Space Important for Investment Property?

When people think of an "investment property," they usually picture kitchens, bathrooms and balconies. But before I get even that far, there's one box I almost always check first… does it include a parking space?

It may seem trivial in some markets, but in high-demand suburbs, a reserved car spot can swing the difference between a struggle and strong returns.

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What a Good Parking Space Adds

Parking isn't merely about convenience. It's something that adds appeal and drives up demand. Parking alone can mean:

• Higher rent potential

  • Many tenants (professionals, families) expect it. Without it, your unit becomes less competitive.

    
    

• Tangible "floor area" uplift

  • In many valuation models, a car space counts in overall floor or site calculations.

    
    

• Flexibility of use

  • If your tenant doesn't drive, that space might become:

    • individual lease (for someone needing a stall)

    • storage (with strata or building approval)

    • future conversion (again, with consent)

      
      

• Resale buffer

  • Properties without parking often struggle when comparable units with parking are available. Sellers are forced to discount.

    
    

• Future-proofing

  • Self-driving cars, ride-share, and micro-mobility are on the horizon, but we're not there yet. Demand for personal parking still drives choice.

Here's a real example of a scenario I've actually seen time and time again.

A client bought a two-bed unit in Bondi that did include parking. A comparable unit in the same block sold without parking around the same time for $1.42 million. The one with parking was purchased for $1.5 million. 

More importantly, the one with parking commanded $135/week more rent. That's +$7,020 per year in extra yield just from that one feature.

In contrast, I've also seen units bought "on the cheap" without parking, only to become a burden when it's time to exit.

So not only do you miss out on additional rent and potential capital growth, you also make it harder for yourself if one day you decide to sell. 

Buyers see apartments without parking in densely populated areas as compromised. Sometimes owners end up having to heavily discount just to generate interest.

So, the question isn't always "Should I buy without parking?" but rather "Can I afford not to buy with parking?"

When a Parking Space Investment Makes the Deal (or Breaks It)

Sometimes you'll come across a property that ticks every box (great suburb, solid building, proximity to public transport, etc) but it lacks a designated parking space. Should you walk away?

Let me be blunt. I rarely buy investment properties without parking, if there's an option that includes it in the price range. There will always be another property with better fundamentals and parking.

That said, if everything else is exceptional and your yield models work without parking, it might be tolerable, so long as you're aware of the added risk, particularly at resale time.

Treat Parking Like an Asset, Not an Afterthought

In the world of property investing, the small details become the difference makers. A parking space is rarely glamorous, but often strategic.

• It strengthens rentability

• It increases resale appeal

• It offers flexibility and optionality in changing urban landscapes

  
  

When you buy an investment property with parking (even if it's just a reserved space on title), you can charge higher rent, have more potential tenants keen to inspect the property and have more potential buyers when you sell.

For the premium you pay, I think it's money well spent.