Hi Experts,
Saw some posts on loans etc and thought why not get some inputs on if buying a car park is a good option or not?
My questions:
Any other thoughts?
Cheers,
If you're talking about a single car space, then I imagine you could rent for around $40-$50 weekly. That would give you a return of around $2,080 - $2,600 annually. I don't know if car spaces increase in value at the same rate as property. You also have to factor in some periods when the car park might be vacant, as it could take a little while in between each tenant..
Hi guys - I am thinking of buying just 1 car space and then renting it out…
just not sure how much is the appreciation in value and what kind of loan to consider…
aganets obviously says that they will increase but the question is how much…
Ah I see - roughly how much are they selling the car space for? if you don't mind me asking, of course :)
I recently looked into this myself to a small degree as it is a cheap form of property investment.
I found this example below on the web, Seems to be a fair amount of rates and levies for such a small income.
http://www.propertyinvesting.com/forums/property-investing/h…
Dear Jason , This car park has just been reduced to $37,000. Probably the lowest priced car park this close to CBD. Details are annually : rent : $4,717 less outgoings : strata levies : $800 council rates : $606 capital work deductions :$585 government car space levy :$1,600 Please let me know if you are interested. I expect to sell this car park within 30 days
When I looked at this ad today it was $39000 reduced from $45000……. It's returning something like 3%
The rent seems to be massive in this case 4747… but lot of outgoings… the person told me that outgoings of only 600 or so..
Agree with both points, looking at findacarpark website car parks for sale around 40k were about 200-250 rent a month.
Maybe that particular site has high rent due to that government car space fee? maybe government building or something?
Either way the real question is capital gain, as with 0 capital gain typical bank savings account looks more attractive
I was like MuzzDaFuzz, i have also looked into investing in car parking spaces. Here is my email
The above car park has been reduced to $37,000 and the owner will consider all offers.
Annual details as follows :
Rent Income $4,717
less council rates $606
strata levy $800
state revenue car park tax $1,600
nett income $1,711
So who ever told you outgoings is "600 or so" lied.
In regards to capital gains, don't expect much. From my knowledge, property of which you own land is what appreciates the most i.e house, where as car spaces, apartments, studios which you may invest in will not give you a high return in regards to capital gain as you don't own the land, just a space in the air, they are best considered for steady income.
With 5k cash there isn't much you can do, (i'm the same, uni student) my money atm is just sitting in various high interest accounts like ubank. I would say wait, and maybe invest in something like unilodge http://www.unilodgerealty.com.au/ .. also search domain as uni lodge places are listed there. say for a price of $175,000 your rent would be around $325 (minus strata etc) your 'take home' is around $200-$220 per week, giving you around 5.5-6% ROI. Again this is for steady income reasons and not so much capital gains, from past sales you may be looking at around 7-10% capital gains after 8-10years.
Hope this helps.
EDIT: After readings MuzzDaFuzz again, seems we were looking at the same car space :P.
i saw some adds on domain and other sites.. somewhr around 35k-40k
Meh not worth it! Put that money in a high interest savings account, you can get 6% per annum pretty easy - guaranteed $2,400 per year with no hassles, no cap gains etc. I doubt the car space will appreciate in value significantly to warrant the trouble it'd be.
mate the trouble is i don't have 40k cash now…i just have 5k which i am thinking of investing…rest loan..
if I had 40k cash then yes, bank would have been a good option..
unless you talking about loaning from family/friends (which is probably a bad idea anyway) I don't see you actually making any returns on this kind of investment. The interest on the loan would most likely outweigh the returns you would make. And i don't think you will see significant gains on the space alone either.
Thanks guys for your comments…
Carparks value you add, but on their own don't hold much capital growth at all…
If your talking an entire car park I'd say go nuts and buy!
Been quite a while now, how is it now to invest in car park slots…
How about now, hows it going
Given the current retreat from CBD's, and likely increase in WFH for a while to come, I'd suspect investing in CBD-based car parks is not a great idea.
woow response to an old email thread and I didnt even remember that i posted this one.
8 years since then. I never invested in a car park reason being the numbers didn't stack up.
Wouldn't do it now although I never revisited this idea.
did end up buying a house in that year though :)
Are you talking about the entire carpark or just a spot in the carpark to rent out?