All Topics / Help Needed! / Sydney Car Parks – Shrinking or Myth

Viewing 6 posts - 21 through 26 (of 26 total)
  • Profile photo of YorkerYorker
    Member
    @yorker
    Join Date: 2004
    Post Count: 306

    Baloo,

    How are you adapting to our current market?

    Profile photo of baloobaloo
    Participant
    @baloo
    Join Date: 2003
    Post Count: 122

    I’m not sure what that question has to do with investing in car parks nor do I understand why you’ve chosen to ask a personal question.

    Profile photo of clintdbclintdb
    Participant
    @clintdb
    Join Date: 2004
    Post Count: 29

    In the interests of getting back onto something resembling the topic….

    I looked at CBD carspaces around 2000/2001 (but bought a house to live in instead).

    At the time, CBD spaces were around $70k – $100k (asking price – not sure what the final sales were) and were renting for a bit over the $100/week mark from memory.

    Some on the city fringes seemed to have a lower entry point at the time yet still receievd similar rental.

    One of the potential risks with the current CBD parking spaces is any legislation that may reduce cars in the CBD. I’m not saying that it will happen but if it does, who will need a car space?

    On the positive side, people may be more willing to drive to a place like Ultimo, park and then walk into the city [smiling]

    Clint

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Hi

    I am still not convinced that carparks would be a good investment.

    Points against:
    – cannot add value,
    – they are all the same with nothing to distinguish from other spaces
    -are locked into a rental contract
    – hard to finance
    – low rental yield
    – legislation changes (eg. a state govt levy could be imposed on all car park owners)
    -hard to sell

    Points for:
    – stable income (??)
    – possible growth
    etc??
    It may be better than putting your money in the bank if there is capital growth. I don’t know what this would be like, but 10 to 20% sounds high.

    BTW, have you considered putting your money with places like Eurofinance – they were offering 9% interest a while ago, secured by 1st mortgage. Or even shares would compare favourable to car parks 3 to 4% yield and then capital growth on top.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

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

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    Baloo,

    Here’s an article about sydney carparks as investments- it’s also a bit of an ad, I guess, but anyhoo- provides some info.

    http://www.propertyreview.com.au/archives/2004/16062004/headline/17062004005.html

    Another good article on carparks as investment:

    http://www.charterkc.com.au/aboutus/media/mediaPage12.php

    kay henry

    Profile photo of MiltyMilty
    Member
    @milty
    Join Date: 2004
    Post Count: 4

    Hi all

    Have found some carspaces which appear to have CF+ve potential, the asking price is in my opinion about 15% below market, and there are 3 of them for sale in a line (all in individual strara titles). Have put in an offer at 20% below market, with a few ‘subject to’ clauses, will see how it goes.

    Under a buy and hold strategy, Cash on Cash return is low, between 4 and 5 % pa based on 50% LVR (of purchase price) main reason for considering is I believe they will provide an immediate capital gain.

    Am considering trying to wrap some or all of them individually at 5% below market to realise cap gain (on paper at least), and improve ConC return.

    This would obviously require a deposit from any wrapee, and also be marginally (approx $10/week) more expensive for them as well, but would provide them with the security of a guarenteed car space, and immunity from rental rises, plus expose them to potential cap gain.

    Anyone have any thoughts on this, or think of any pitfalls or problems I may encounter?

    Cheers

    Milty

Viewing 6 posts - 21 through 26 (of 26 total)

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