Investing in a car park in AKLD CBD

[rookie99]

Hi there,

I'm novice and this my first time investing, ideally I would love to buy a property however I don't think I am ready yet to do a quantum leap also I might be changing jobs soon.

I'm looking into investing a car park in Auckland its a small small investment and the returns are small however I figured its better than putting my money in the bank.

I saw an ad selling a car park for $ 40,000, predicted income p.a. is about $ 1,800 and expenses is about $ 674 p.a.

Could someone give me some advice on the pros and the cons of investing in a car park?

Thanking you in advance

rookie 99

[spurner]

Hi and Welcome,

That's a net return of 2.8%, less vacancy, management and miscellaneous expenses. I think you'd be better off putting your money into a term deposit.

Carparks are good in that there is low maintenance and never really need to be upgraded. But ideally you'd want an economy of scale, such as 10 or 100 carparks.

I think buying 1 carpark would be alot more hassle than its worth.

My 2c.

[PeterEmpowerEd]

The crunch is funding

Cashflow issues aside, funding a carpark purchase can be tricky ... banks don't tend to see the security and so you need to offer some other collateral for the loan... and why would you?
Peter