All Topics / Help Needed! / Car parks, a worthy investment?

Viewing 8 posts - 21 through 28 (of 28 total)
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  • Profile photo of lkccountantlkccountant
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    @lkccountant
    Join Date: 2009
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    March 21, 2009 - 6:57 am

    As returns are always similar, 6% to 8%, then Capital Growth will go up with the rental increases. So it's important to ensure there is CPI increases, and market increases, and I d say a long lease too. I think they are good cash flow investments,  at a very low entry price into the market. Even at 50% financing, on interest only, you will be cash flow positive.  

    Profile photo of daveinbalmaindaveinbalmain
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    @daveinbalmain
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    September 2, 2009 - 4:44 am

    Hi Nigel
    I'm a bit confused…………. if there's no capital growth why would you bother?  I've just crunched some numbers, in a very rudimentary way, on a car park for sale in Sydney CBD.  It's up for $140k.  The cost of financing this, including rates, strata charges and Sydney's $2k p.a. parking levy, if $392 per month more than the advertised income stream.  Surely there must be the prospect of capital growth to even consider this.

    I am interested in your central contention.  Sydney's CBD has a finite supply, and increasing demand for, car parking.  This of course over time will push up parking charges, as it most assuredly has over the last 10 years.  How therefore is the net worth of each park not going to increase?

    Daveinbalmain

    Profile photo of TerrywTerryw
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    @terryw
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    September 2, 2009 - 1:49 pm

    Yes, i can't see any point in investing in something without a capital gain either. You will also have entry and exit costs – not to mention difficulty selling and the low leverage.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of daveinbalmaindaveinbalmain
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    @daveinbalmain
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    September 9, 2009 - 5:47 am

    Thanks Terry
    Yeah – as I said, confused.  I got me 'O' Level in Economics many aeons ago and thought I'd got the old demand/supply equilibrium thing down pat so quite how one can assert zero capital growth in this scenario is beyond me.  If anyone can help shed light on this I'd be very grateful!

    cheers
    Daveinbalmain

    Profile photo of ClaudClaud
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    @claud
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    October 15, 2009 - 12:45 am

    Hi Guys,
                   Some advice relating to carpark investments. I currently have an invesment property and considring extending the loan by an extra 30,000 to invest in a carpark in Melbourne.  Offering 4.2% – 6% returns on some im wondering what sort of outgoings im looking at government related??

    Stamp Duty? Taxes? What else other type of outgoings shoudl i be asking for prior to purchasing of the current owner??

    Supose im trying to wigh up the pros & cons… Any Help would be greatly appricieated.

    Regards,

    Claud

    Profile photo of JaSin66JaSin66
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    @jasin66
    Join Date: 2011
    Post Count: 30
    October 31, 2011 - 12:35 pm

    Buy the latest copy of "Smart Property Investment" (30 sizzling suburbs on the front cover)….page46 "Park your profits" an article on car spaces…..

     it says…."Top car park returns"…WA-13%….QLD-12.6%….VIC-8.8%….NSW-6.2%

    Also says…."Capital Growth:analysis of average car space price changes over past 5 years" and the growth was…. NSW-25%….VIC-44%….QLD-85%(AVERAGED17%PA)….WA-77%….

    So I guess that's a big PHOOOOEY to the no Capital Growth Theory!

    Elsewhere it says as long as your buying Strata title the major banks should offer up to 80%.

    Says costs are significantly higher in NSW & VIC where owners are subject to congestion tax, in certain parts of Melbourne for example investors are subject to a yearly levy of $880, in Sydney a similar levy costs investors $720 in some areas & up to $2040 in others.

    Here's a reply to a query I sent in…………..

    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%……….sell within 30 days my backside!!!

    Hope that answers a few questions.

    Profile photo of mattstamattsta
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    @mattsta
    Join Date: 2011
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    November 2, 2011 - 10:08 am

    hmm.. i haven't invested in car parks myself.. but i've read some books that have touted the benefits of car park investing.

    Well done at least for wanting to get a head start in investing.
    (Just remember that you're bound to make some mistakes for your first rounds of investing) You'll learn as you go along.

    Profile photo of kellywellykellywelly
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    @kelly-whiteman
    Join Date: 2015
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    July 13, 2015 - 2:01 pm

    Hi all,
    I’m just reading up on this topic now in 2015, are there any new school of thoughts? Any new fees/taxes to consider?
    Thanks :)

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