Hi
I am interested in what others have to say in relation to purchasing a car park space and its benefits vs pitfalls?
I'd particularly like to hear what if anything a potential purhaser should be aware or any other advice I can get.
I look forward to hearing.
Derek
Unless you are buying at a really good yield be prepared for a lack of capital growth. There have been plenty of negative commentries on this type of investment.
The API magazine have done a couple of articles on car parks. The latest was in their November 2009 issue.
They had a case study from someone who purchased one – he did it because he didn't have a car space for his job and so he bought one for use at that time. He purchased it with cash, was able to sub-lease it if he wanted to, had to pay body corporate rates on it, it came with its own title.
I looked into it (was going to do it from my superannuation fund at the time), couldn't see that the numbers worked and wasn't sure whether or not it could be insured. So decided to stay clear of them.
DAMProperty | DAM Accounting Services
https://www.damaccountingservices.com.auUnfortunately you can’t add value to a parking space, (as far as I am aware) so you are limited to relying on Capital Growth. Interested to see what others have to say about this sort of investment though
Holly
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