Hi guys,
Have read a lot of the posts about carparks with interest and got a few more questions….
I understand they look quite attractive at first but banks aren't as keen and there are issues with finding tenants and often hard to sell..
What about places such as these with guaranteed income?
Seemingly not as much risk involved?
If banks lend around 60% towards these the income works well with loan repayments etc..
Was looking at buying a small property to live in and just sussing out other investment options…
Love to hear your thoughts!
What happens to your guarantee if the companies goes into liquidation 1 month after settlement?
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
Got ya!
Yep that's exactly the sorta info/thinking I need.
I'm right to think then that borrowing for them is riskier than buying outright (with own cash) as worst comes to worst you still own an asset but don't have to make payments on it…no tenant isn't great but you're not forking out cash during the time you're looking for a new one…
Makes sense, sorry for the newbie questions!
Nick
What happens to your return when the state governments puts up the levy on car part spaces – maybe to help reduce the number of cars being driven?
What will happen if another couple of car park buildings pop up nearby?
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
Terryw wrote:What happens to your return when the state governments puts up the levy on car part spaces – maybe to help reduce the number of cars being driven?What will happen if another couple of car park buildings pop up nearby?
Points taken!
Is the levy increase just speculation?
There's plenty of parking places in the city and I suppose more will eventually pop up, supply and demand like a lot of things I suppose?
Appreciate your replies, you're not a fan of car parking as investment obviously? First hand experience? or?
I think car spaces are a waste of time and effort – but no personal experience in this area. Think of the opportunity cost – ie what you could have invested in instead.
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
Cool.
What would you invest in for that price range?
Shares.
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
They are notoriously hard to off load. I have been watching some in my local area that have been on the market for more than 3 years. Even with dropping the price 10% people just can't get rid of them.
Tools
Cheers Tools. I've seen quite a few that seem to have been listed for ever too…
Onto another line of thinking it seems then for me!
I think they might be ok for just a cash flow generator but capital growth is doubtful and expenses incurred could be another problem.
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