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  • Profile photo of daveinbalmaindaveinbalmain
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    @daveinbalmain
    Join Date: 2009
    Post Count: 2
    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 daveinbalmaindaveinbalmain
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    @daveinbalmain
    Join Date: 2009
    Post Count: 2
    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

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