Ohk so I have found a carparkselling for $25 000
secure lease currently returning $127.30 pcm. 10 years remaining of a 15 year lease .
What does $127.30 pcm mean?
That it has an annual return of $127.3 per cubic meter?
If thats the case the ad doesnt even give the size of the car park for sale
Also are carparks like property, when it comes to security etc? That is when I apply for a loan in the future can I use the car park as collateral?
Per Calendar Month.
If they are selling a parking space – is it strata titled ie on a separate title to any of the suites/units in the building? What are the outgoings?
By secure lease, how? Is there a current 15 year lease on the carspace (via the carpark operator)? What is the rent review mechanism (fixed, cpi, market)?
If the space has separate title, and a good lease you may find that banks will lend with a low LVR 50-60% only.
You would probably make more money by putting $25,000 into an ING account than by purchasing this – don't you think?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Agree with Terry.
The return on this investment is 6.1%.
You cannot add value, you cannot improve it, there are virtually no tax deductions other than the loan, or of you pay cash for it; you can get 7% for cash at ING, and it is on 24 hour at call.
Offer them $15k.
lol true
i just didnt now what pcm stood for, if it was per cm on an annual basis, now we are talkking
lol true
i just didnt now what pcm stood for, if it was per cm on an annual basis, now we are talkking
You could paint it? add curtains maybe?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
And a bed. Room by the hour?????
Check out whether you are liable for council rates.
There was some publicity in Brisbane some time ago when car parks first became available for sale and the Council was charging full Council rates (including water and sewerage) on EACH car park. Clever cartoons showing carparks with loos and taps.
Many years ago, not sure of the situation today, but would be worth checking as $1500 or so a year in rates would impact on your return.
MargTerryw wrote:You could paint it? add curtains maybe?subdivide into bike parks
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