Investing in property has always been a practical and relatively safe way to earn a good rate of return on your funds. Property investment rarely makes you rich overnight but it almost always increases in value. Of course, there are several types of property investment, from flipping to renting, and even construction. But, one that is frequently overlooked is parking spaces.
Why You Should Invest In A Parking Space
If you take a look around any of the major cities in Australia you will instantly notice that the roads are packed with parked cars. There are car parks and these are generally busy. But once you start looking you will realize why so many people fight over street spaces, they are significantly cheaper than the exorbitant rates private car parks charge. Of course, the problem is getting worse as the number of cars on the road is increasing.
This has led to a new type of parking. Anyone can take advantage of it although commuters tend to benefit the most. Anyone in the city who has a parking space or garage can rent it out. It is easy to do through schemes like these parking stations North Sydney. The intermediary handles all the paperwork and finds the customers. They take a little of the money and give you the rest, you don’t have to do anything to earn money on your parking space.
It is that simple and represents a great investment opportunity. You purchase a parking space or several and market the spaces. You undercut the private car parks, creating happy customers and making yourself richer in the process. Of course, the space is likely to increase in value as spaces get even harder to find, this ensures your investment earns in two ways.
You can choose to market the space or spaces yourself or you can use the third-party intermediary and take all the hassle out of the process.
The Right Price
However, before you rush to grab the next available parking space do your sums, just as you would for any other investment. If you own a parking space and rent it out you will probably want insurance to ensure you are covered against any issues.
Alongside this, you will need to consider how much maintenance will need to be undertaken each year. These are both costs that will affect your bottom line. In short, to ensure your parking space(s) are good value, you need to make sure you get the spaces for the right price. Once you know the costs you can calculate how much you are willing to pay and look for an investment space in the same price range.
Getting Carried Away
If you want to take this a step further then spaces will always be needed. You can purchase a car park and undercut the existing car parks to earn a good rate of return on your investment. You may need to be prepared for a price war!