2019 Money Magnet Symposium - Discover how to make, and keep, more money and achieve a financially empowered future
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  • Profile photo of helin16helin16
    Participant
    @helin16
    Join Date: 2009
    Post Count: 9

    I have come across the sale of car parking spots in Melbourne for $37,000 which offer a 7.5% NET. locked in for 3 years.

    Has anyone ventured in the car parking spots? if so, what do you need to look out for? is it a wise investment? what is the capital growth like (as the net return sounds quite good)?

    Do you really owns that property? is there is strata fees?

    Profile photo of Howard MoralesHoward Morales
    Participant
    @howardm673
    Join Date: 2015
    Post Count: 16

    Since, it is a commercial property naturally you will get a good profit of it. But before you sell your car parking you should hire a real estate agent he may help you in selling your car parking at best prices.

    Howard Morales | Selling investment property in brisbane
    http://www.mcbeathrealestate.com.au/

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    I would suggest a car park is a bad investment. Best to avoid.

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

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of wobblysquarewobblysquare
    Participant
    @wobblysquare
    Join Date: 2010
    Post Count: 95

    Why are you buying? Do you want / need capital growth? Or are you in a position where it is in fact only the income component you are after and any capital appreciation would be a bonus or irrelevant (as you wont sell regardless).
    It doesn’t sound as though you are sure of all of the costs, make sure you have ALL of the info before making a decision. How is it in fact structured, do you own a car park? Can there be other costs (is it part of a multi-story building which needs work). Are more parking spaces being built nearby, or could they be easily built in the future.

    In short
    1) WHY are you buying (what do you need from the investment, income vs capital growth)
    2) How secure is the income? (competition, future competition, alternate uses)
    3) What is the likelihood of the income increasing over time
    4) are all the likely costs accounted for
    5) what can you do to increase its income (advertising on the site?)

    I am with Terryw on this one. I’d sooner have shares in Telstra.

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