Car Park investing

Viewing 7 posts - 1 through 7 (of 7 total)

Beginner
Participant
@beginner
Join Date: 2003
Post Count: 7
September 28, 2004 - 8:15 am
Hello..
I am new to investing in the property market and was wondering if somebody can tell me the pro’s and con’s of investing in Car parks??
thank you
FFComm
Member
@ffcomm
Join Date: 2004
Post Count: 627
September 28, 2004 - 1:49 pm
Pros:
~Hnds off (you just get the cheques in the mail
~No tennant hassels
~Can be CF+ in metro
Cons:
~Banks dislike lending on car spots
~High deposit req.
~Hardly any Capital Growth
~Fees are usually involoved
Rgds.
Lucifer_au
Yorker
Member
@yorker
Join Date: 2004
Post Count: 306
September 28, 2004 - 9:31 pm
From experience, I recently purchased a couple in Pyrmont. I purchased them via my superfund and am just going to take the cashflow. The yields are very minimal, say around 3% and quarterly levies are amazingly high. There is no opportunity to add any value to them and I’ve been told by several developers that they are very difficult to resell. I wouldn’t really borrow too much on them.
Beginner
Participant
@beginner
Join Date: 2003
Post Count: 7
October 1, 2004 - 3:53 am
Thanks for the advice…
[wink3]
Mad-Cat
Member
@mad-cat
Join Date: 2004
Post Count: 30
October 1, 2004 - 5:34 am
I purchased them via my superfund.
How can u purchase things threw your super?
PropertyGuru
Participant
@propertyguru
Join Date: 2003
Post Count: 1,502
October 2, 2004 - 4:33 am
Originally posted by Mad-Cat:
I purchased them via my superfund.
How can u purchase things threw your super?
You can manage your superfund your self. And can buy properties or share using your self manged fund but return will go back to super you can’t use return for your daily expense. check this website
http://www.onlinesuper.com.au/
Cheers
PropertyGuRu
[sultan]
Mortgage Consultant
Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
October 2, 2004 - 4:45 am
Hi Mad-Cat,
As PG said set up your super fund as a SMSF and you can buy whatever you like provided it complies with the legislative requirements.
If your superfunds are limited you can set up a trust like structure and borrow the remainder of the funds needed – bear in mind costs and income is apportioned in accordance with the ownership ratios.
SMSF cannot invest in your own place of residence, they can invest in residential property and are able to invest in commercial property – including the property your business is housed in, if appropriate.
PG has provided a link to a company that can assist with these matters. SMSF are not something you should try at home without first seeking good quality professional advice.
Derek
[email protected]
Property Investment Support Available. Ongoing and never stopping. PM welcome.