Is there a market for parking in the outer boroughs?

Check if there's a parking "maintenance" on those spots. I looked an apartment in NYC that came along with a spot for something like $85K. Sounded like a decent deal, until I learned I'd be paying $150/month for a spot that I just bought for $85K.

lobo, if you can get a good price on a parking spot, I think it's a MUCH better investment that storage space or cabanas or whatever other newfangled "add-ons" are being marketed in new construction now. Yes, there is monthly maintenance on the spots, but it's usually not very much (I pay ~$90) and you should be able to easily cover those costs if you rent it out. If Bloomberg's congestion pricing ever works out, parking in these areas just outside Manhattan and near a subway line would become even more scarce. That said, obviously don't let a good, cheap, parking spot be your first motivation for buying one of these units.

As a person who has always had a car in the city I think it really is a win-win situation.Especially out in an area like Williamsburg where there are not many alternatives to street parking. And since these spots are separately deeded you can offer the apartment for sale later with or with out the spot. This way you don't alienate buyers who may feel they are paying extra for something they don't need. In this case you could keep the spot and easily rent it out to cover your costs.

I pay both real estate taxes and maintenance on my outer borough indoor spot....not much about $40 per month...can rent it for between 150-200 monthly

great, thank you for the advice.
I also feel like a spot is a good investment anywhere in the city.

Good point on the maintenance cost. I'll be sure to look at that. Was not aware that there was an additional cost. Does that fee typically go in to the overall buildings maintenance or is it held specifically for the parking garage maintenance?

In the case I looked at, it was separate.

I am not sure I agree with the posters above. The fact that you can cover the maintenance with your proceeds from renting it out is akin to saying "RE is a good investment because I can cover my maintenance and RE taxes with proceeds from renting it out". Just like RE you have to do a "rent vs. buy" comparison factoring in all the upfront and ongoing costs. In the case I looked at, it didn't come close to making sense. In your case, it may or may not, depending on the math.

I guess at the end of the day it makes most sense if you will use it, I was assuming you had a car.

When you rent the space, must it be to someone who lives in the building? Would you be able to rent it to someone who does not live in the building? How big is your potential rental pool?

lobo, as newbuyer99 said, it's usually separate, as the space is a separate, deeded piece of property. I understand what newbuyer's saying, but I don't think you can really compare an indoor parking spot to an apartment. First of all, in most cases, you're not getting mortgage on the space. It's obviously much cheaper than a home, so you'll most likely own it outright. Second, I really don't think they'll be building too many parking garages or putting tons of extra parking in these areas, at least not relative to actual housing, so their potential for appreciation is better, I think. Like I said before, a parking spot shouldn't really be a huge factor in your decision to buy a particular unit or in a particular area, but if you can get one for a good price (say, under $40k), I really believe it's a good investment.

drdrd, definitely something you want to be fully aware of. If there are any such stipulations, they should be spelled out in the offering plan. If not, check with your attorney, for sure. The condo board may have a say in it if you're providing access to the building to someone they don't feel comfortable about, but otherwise you should be able to rent at your discretion.

Sorry to belabor the point, but I am still not following how the investment decision for a parking spot is different than for an apartment.

A mortgage is just a mechanism - I presume if you were an all-cash buyer you'd still do some math to figure out whether it makes more sense to buy than to rent, i.e. the opportunity cost of the entire purchase price.

And your argument of why it's likelier to appreciate is the exact one people always use for Manhattan RE appreciating. Very limited supply, inability to increase supply meaningfully, and robust demand. As for Manhattan RE, all true, but all already priced in. Whether it's priced in by too little or too much is a much more difficult question...

newbuyer99, I get what you're saying. I just think the reality is you're talking about something that costs vastly less money, and therefore is usually not a leveraged asset. There are cash buyers for apartments out there, and they certainly have to do their own analysis as well, but I'm not advocating a blind purchase at all, in either case. I definitely agree some of these spots are way overpriced, but if you can get a good deal on one, I'd need a pretty convincing argument on why it's still a bad investment. As for the supply issue, just take a look around Williamsburg and Dumbo (not so sure about LIC). There aren't parking garages anywhere. And those areas are only going to get more crowded.