Pros and cons of buying carparks in Sydney

Does anyone have any experience in purchasing and then leasing carparks in Sydney? I want to know the pros and cons.

 

Are you looking at leasing the car parking building to permanent parks or have it managed as the casual parking with machines ?

 

Sydney Airport was selling parking spots which will be managed by a security firm. I think it was $ 48,000 per spot with 6% return. Imagine airport carpark income in the last 18 months?

 

Yeah it would be unbelievable ...people who traveled overseas and now not allowed back in due to COVID-19 so the car is stuck in a park for years

 

Why are you interested in car parking spots? What is your thinking/motivation here?

 

Individual car ownership may drop in the future years. On the other side, housing is an essential need.

 

Have you considered:

• Rental guarantee (you are paying for it in the price)
• Equality of bargaining power with the airport owner
• How is title arranged (is it exclusive rights, strata, licensed, freehold etc)
• Distribution of income (how do you know whether your spot is used the most/least & does income recieved reflect utility)
• Rates/Levies/Land tax
• Impact of travel bans/lifting of bans (will income increase when international travel is allowed again or is it fixed)

 

Also consider whether it's a marginal seat as you might end up with a government funded one next door.

 

I'm thinking of leasing the carparks to the permanent ones.

 

One of my friends has suggested me this for investment purpose.

 

Might be time to de-friend.

 

Depending upon Location don't forget about the NSW Parking Levy