Hi all
Would like some advice on car-parks as investments,
if anyone has any experience and/or knowledge on this.
Thanks Mark
I would like some knowledge on this too.
I posted this a few days ago in another topic in this forum but got no reply
A cheap form of property with a high rental return (alot above interest rates/currently). Ok so they don’t appreicate in value (but you have CF+) but do they depreciate (seeing as we are in financial crisis times)??
I just looked on findacarpark.com.au and I have looked on the sydney maps…
110 sussex street is for sale at $90,000. and under the rent section of the website the same place (110 sussex st) is for rent at $433.35/month which equates to 5200 per year.
This means the return is ~5.8% which is lower than interest rates (currently?). Note this is the first one i looked at, so it might be low?
But is this how it works really… buy the parking space (with borrowed money), collect rent, pay mortgage but still have some rent left over so CF+… don’t worry about capital growth or captial decline cause you have instant CF+??????Chris
DraconisV wrote:I would like some knowledge on this too. I posted this a few days ago in another topic in this forum but got no reply A cheap form of property with a high rental return (alot above interest rates/currently). Ok so they don't appreicate in value (but you have CF+) but do they depreciate (seeing as we are in financial crisis times)?? I just looked on findacarpark.com.au and I have looked on the sydney maps… 110 sussex street is for sale at $90,000. and under the rent section of the website the same place (110 sussex st) is for rent at $433.35/month which equates to 5200 per year. This means the return is ~5.8% which is lower than interest rates (currently?). Note this is the first one i looked at, so it might be low? But is this how it works really… buy the parking space (with borrowed money), collect rent, pay mortgage but still have some rent left over so CF+… don't worry about capital growth or captial decline cause you have instant CF+?????? ChrisI'm new too. But I think you don't buy it (all with the borrowed money).
To have positive CF, the rental has to be greater than the repayment, so assume the same
maturity for the loan, the more you borrow the more you repay each payment.
Then you need to work out how much you should contribute and how much to borrow, so that
your repayment will be smaller than the rental. Is it right??3ric
You will need to make sure that the council does not charge rates on the parking space at the standard rate (it may well outstrip any return).
and management fee…
Car Park Invest is a good site, i bought 4 spaces from them as an investment in the UK, they offer guaranteed returns. Only £12.5k each!
Its worth a check, http://www.carparkinvest.com
Pepsi x
You may have to pay a congestion tax – Melbourne was considering implementing this for inner CBD car parks.
Being Commercial you probably have to charge GST on the rent.
Also there may be management fees for maintaining staff and toilets, Lifts, ect
Hard to resell is another problem.There is a yearly levy for carpark spaces in the CBD and some surrounding areas in SYdney. I recall hearing in the recent mini-budget that these levys had just been increased from about $800 pa to $1200 pa
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
Hey All,
I wouuld like to thank you all for you input.
THANKS
Mark
Hi All,
Just curious how you folks got your personal portrait. God_of_money's is uniquely entertaining, Mark's thumps up is just innocently cheeky and Scott, where did get those moving eye balls?!
JennyIf I told you Jenny, I'd have to kill you (and change the eyes, of course).
OK, Scott. So they are worth a lot!
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