Hi
Has anyone got a view or had experience on investing in car spaces?
They may be a good long term capital growth prospect.You may be onto something there. A few of my mates are getting into those. These are smart fellows, so maybe a good investment. Let me know how you go.
thx Yorker – I have recently bought two for $56k a pop, settle in 18mths – as a guide I used the fact the car space on my Sydney unit was worth $25k 5 years ago when I bought it.
Originally posted by jusmcf:thx Yorker – I have recently bought two for $56k a pop, settle in 18mths – as a guide I used the fact the car space on my Sydney unit was worth $25k 5 years ago when I bought it.
An associate bought his in around 1988 for $70,000
Corner Park and Castlereagh.Great investment.
thx for feedback gmh454
gmh454,
what % return is he/she receiving on this investment?sg
I think these carparks return around 3%, however there is no vacancy risk or major maintenance. There are outgoings, however I think people must be looking for capital appreciation.
Shane g/Yorker – the spaces are managed by Securepark on a 5 by 5 yr lease with g’teed net rental of 3% (CPI increased annually). After 5yrs you can do what you want i.e. renew lease at whatever they are offering, use it yourself, rent it yourself privately. They are individually strata titled and can be sold at any time. 10% down now with settlement in 18mths when the refurb is complete (Abigroup doing the work). Not many people lend against them – Westpac will do a 50% LVR. They are in the old Harris St Car Park in the Goldsborough building, Darling Harbour – there is a residential refurb going on at the same time – car spaces being reduced from 1600 to 400 odd. I bought them for capital growth reasons.
Cheers Justin. Purchased acouple today, not many left. If anyone else is interested I have built a good repour with one of the sales guys. Email me.
isn’t positive cashflow the main reason for investing on this website?
i just think 3% is a pretty ordinary return unless you think the capital appreciation is going to go through the roof in a short space of time!
p.s.sorry if i sound naive!sg
I think you would be better off putting you money in the bank than investing in a carpark. What’s the attraction?
Terryw
Discover Home Loans
North Sydney
[email protected]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
add 10-20% capital growth p.a. to the net rental yield – that’s attractive
Originally posted by jusmcf:add 10-20% capital growth p.a. to the net rental yield – that’s attractive
Guaranteed ? Where do you get the 10-20%pa forecast ?
How much will your money earn if you leave it in the Bank? Does it have any potential at all for capital growth? Are you open to diverse investing opportunities? I commend Justin for thinking outside the square, well done mate.
Why are car parks expected to achieve captial growth ? There is not much you can do in the way of captial improvement and you seem to be locked into a market where you can’t differentiate your asset from the other couple of hundred around you.
I am genuinely interested in answers.
car spaces have doubled in price in the last 5 yrs around the cbd, i’m not saying that this will happen over the next 5 yrs however – even if you took a conservative 5% p.a. growth plus the 3% yield you will still outperform cash – unless you put in Terryw’s bank
Are there any outgoings ? You can quite easily find a 6% return in Banks so it might be a close call.
Also, am I right that you are not able to finance Car Parks ? So you can’t gear them like you could with stocks and a margin loan.
Does anyone know why the banks won’t finance car parking ?
Baloo – i have put up the details before
Baloo,
Did you really think about that last question? Justin purchased the carparks because they are in scarce supply and high demand. If you review your investment portfolio surely those investments which fall into these categories i.e. low supply, high demand would be among the better performers (That is presuming of course you have an investments portfolio).
Yorker,
I was trying to get information directly from investors without having to rely on the marketing departments of companies pushing the investment. i.e. the claim that they are scarce supply and high demand, is that straight from the advertising or is there data to back that claim up ?
I am genuinely interested but am unable to find any real data on sydney car parking spaces. Call me a cynic if you will, but I prefer to verify claims made by spruikers before considering investment.
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