Car Parking Spaces

The mounting scarcity of car parking spaces in Sydney and Melbourne is giving quite a boost to the niche investment parking space market.

Brett Matthews, joint CEO of Secure Parking, which operates and manages around 180 car parks around Australia, says that some parking spaces in Sydney CBD have sold upwards of $80,000. The average cost of one in Kings Cross or Ultimo would be $50,000.

Sold through real estate agents, car park spaces give a consistent return of 6.0% to 8%,the rents are usually indexed to inflation (handy if high inflation hits) are fully managed, and would usually be managed by a reputable operator on long leases.

Capital Growth is usually tied to the rental increase. In other words, if rents go up 4% per annum, that is you capital growth.

In Melbourne, expect to pay anywhre between $35,000 to 70,000 for a well located, high yielding space.

But they are very safe and secure, and it is sure better than leaving your money in the bank!

Newer car parks, in desigbnated office buildings, will be easier to manage and will give higher returns than private car parks offered by individuals in residential buildings.