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Car parks?

Discussion in 'Commercial Property' started by Beelzebub, 19th Aug, 2015.

  1. Beelzebub

    Beelzebub Well-Known Member

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    I read an article in this months issue of API discussing the pros and cons of investing in car parks as an alternative to property.

    Wondering what people here think about car parks as an investment?
     
  2. jaybean

    jaybean Well-Known Member

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    I would buy one under the right circumstances. For example I have an apartment in the CBD where there are only 70 other apartments and only like 10 parking spaces in the garage. It's a boutique building and lot of people who own apartments in here are loaded. So if one ever came up i would snatch it up for sure.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    In many instances they have a poor rate of return when all is considered. Rates apply separately as they have their own title and could contribute to your land tax liability too. Need to confirm IF you are able to separately lease it (as they will require a gate key/controller - what else do they gain access to?)
     
  4. wobbycarly

    wobbycarly Well-Known Member

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    Even at this price? :eek:
    http://www.smh.com.au/business/dodo...ord-200000-car-park-sale-20150818-gj1mx7.html
     
  5. Beelzebub

    Beelzebub Well-Known Member

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    600 flats and 200 car parks? That's got to do wonders for demand? I'd consider it if the yield was really good: But it would have to be 10% plus for me to bother looking into it any further. Otherwise I'd just buy a house.
     
  6. Azazel

    Azazel Well-Known Member

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    Yeah, nah. I can imagine buying one for $45k and the bottom falling out of the market.
    May as well spend a bit more and buy a cheap house:
    http://www.realestate.com.au/property-house-qld-russell+island-119525311
     
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  7. DanW

    DanW Well-Known Member

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    Generally not being able to leverage makes them a no no to me. 6% yield and no leverage, not good. Better to buy a commercial property with 8% yield, 65% loan with lower interest than the yield.

    The exception is when buying residential apartment - if the option is with a park or without, I would take with the park. It's the only time you can borrow 90% LVR on a car park! When it comes on title with the resi..
     
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