Not every good investor will put all his eggs in one basket. You must diversify your investments (bank, life insurance, stock market, real estate, etc…) to earn as much income as possible. Investing in stone is still the mandatory step in building a solid estate. The advantage is that there are many variants: paper stone (SCPI), studio, apartment, commercial walls, offices, retirement home room, warehouse, parking, garage or box.
Why invest in a car park, garage or storage space
Recently, we have seen an explosion in the number of websites promoting the benefits of investing in the parking niche. There is no secret : with a low initial investment, almost no maintenance costs, law in favour of the owner, all accentuated by the anti-car campaigns in major cities have exploded the parking market. Unlike housing, the daily rental management of a pitch is really very simple ; and no tenant risks breaking the concrete of your car park ! Buying a car park is a profitable investment.
A few years ago, the yields of a car park or garage were over 15% net. Today you have to fight to find the rare pearl that will make you earn 10% net, but it still exists! The real estate agency market is limited to 4% gross, you have to look further, meet owners and you will find this property…
Everyone dreams of investing in parking lots. This real estate niche is performing well and can quickly turn into a nightmare if you are not careful. You must take the time to carefully analyze the geographical location before you start, that is the only key to success !
Preconceived ideas on investing in the parking niche
- This vein is already being exploited, the niche is saturated. FALSE, Did you know that there are several types of investments related to car parks ? Come on, we’re giving you some leads : garages, box, amodiation, cellars, warehouse… Here are some of the sectors of activity related to this product : parking, furniture storage, luxury vehicle storage, wintering of motorhomes, caravans….
- Profitability is zero, there is nothing to sell on the market. FALSE, it is precisely because garage lots offer good rental income that there is little property to sell on the market. Rental income represents lower amounts than for traditional real estate but it multiplies more easily and the gross / net ratio is very close. It is precisely because of this received idea that people who inherit a lot of garages will sell it at a derisory price and make an informed investor happy.
- Les garages sont chers. FALSE, of course, if you compare the evolution of garage prices over the last 10 years, a lot of garages are much more expensive. Inflation in the real estate market explains current prices. At the moment, it is very interesting to take out a loan to invest in this real estate niche. A lot of garages is not necessarily expensive, everything depends on the return / risk ratio and the real cash flow of the selected property.
- There are a lot of scams. FALSE, there is no more scam in this niche than in real estate in general. Beware of ads that are too attractive, sellers that are too confident and lots of strange garages that go beyond traditional schemes.
- I’m going to lose money. FALSE, if you take the time to understand this niche sector you will not lose money, quite the contrary! Garage lots are sold regularly since buyers, poorly informed, do not know how to optimize their investments.
- There are a lot of unpaid bills. FALSE, the amount of rents is much lower than for a dwelling. If you follow our advice to choose your future tenants and have automatic transfers set up, you will have no problem.
- Town halls chase cars out of town centres, it’s hopeless. FALSE, Since major cities have been running campaigns to reduce the number of cars, rental demand has exploded. Remember that each site can be used for other purposes than parking vehicles !
High potential for return
Investing in a car park, garage or storage box will generate big profits since operating and maintenance costs are reduced to a minimum. Real estate experts are unanimous : housing is less profitable than a garage or car park. This statement is valid provided that the acquisition cost is at least 10 times lower than that of a dwelling in a given geographical area.
There are several ways to operate a site, some of our members have even created companies to operate the vein. Beyond the parking lot, you can offer to store or store furniture in a garage; keep luxury vehicles; winterize campervans and caravans…
A quality location is defined by a rapidly growing rental demand with a lower acquisition and maintenance cost.
Our community can help you
Most people are afraid to invest. How to find a good real estate deal ? Everyone wants to build up assets and generate additional income. Are you worried about having problems finding your future tenants ? How to create a Civil Real Estate Company ? Want to learn the strategies that work to boost your performance and save taxes ? Would you like to benefit from the skills and experience of other owner-investors ?
A question or an idea for improvement, leave a comment