Hi All, I'm interested in purchasing a carpark in either Sydney or Melbourne CBD to lease out to others. Just starting my research but thought I'd ask here if anyone with first hand experience can offer some tips for a first time car park investors. Also, can anyone refer me to some carpark data such as median prices (I'm keen to understand capital growth rates), yields and on going costs. Thanks all.
There were previous threads on SS and here - they are a poor investment generally, difficult to finance, CG is negative (usually). Linky - Metropole Linky1 - PIC Linky2 - Just don't (good article)
Timely post. I was wondering the same thing. I recall about a year or so ago, car spaces near the Sydney airport were up for sale. I was tempted to buy but didn't at the end up doing so.
Yeah I was looking at those about a year ago....some of the numbers being thrown around by those selling them seem to suggest pretty good yields but I didn't investigate closely. However, after reading some of the articles in Scott's above post I suspect the numbers I was given a year ago conveniently omitted the costs. Didn't move forward as I didn't know enough about it at the time and felt I was being given a very slick sales pitch.
Hi mate, as @Scott No Mates said, they're tricky to finance. most banks classify them as non-residential assets and can only lend a 70% LVR at best on them. Plus you'd get wacked with Business loan interest rates and establishment fees, which are higher than home loans.
Limited CG, no control, little land value, restricted finance....should I go on? When you sell in the future the purchaser is going to have the same concerns. You would have wanted a lot higher than 6% to compensate for the above IMO.
