Car Parks - St Kilda

W

WebBoard

Guest
From: Zak Stojanovski


Looking into buying a car park in StKilda
(Cnr Fitzroy St & Canterbury) - Metropole
$45,000 15 Yr lease with 10 yr option
6.5% return.

Need some feed back as to some experiences
of similar purchases. I would like to know what to look out for prior to purchase of a car park in St Kilda.
 
Last edited by a moderator:
Reply: 1
From: Michael Yardney


Hi Zak
While I can see the initial attraction of a long term lease, with a car park purchase you will find that it is not real estate that you are "really" buying; but a stream of income.
You have no direct control. It is leased to a car park operator and there is little you can do about it.
You can't improve it and increase the rent, you can't furnish it you can't change the agent.
And in particular no way of boosting your rental through direct control.
Further the resale market for "used" car spots is very weak. After all the marketing hype is over for your new building, who's going to buy your spot? Especially when its old and has oil stains all over it?
And which agent is going to bother selling something worth $45,000 considering the small commission. You see...with the initial sales there is a larger commission in it because this is where the developers make their cream and are paying a fortune for the advertising campaign.
Considering you are buying about 18 sq mts of concrete, you are paying quite a lot of money.
Sure if you are looking for cashflow, its better than money in the bank, but not as safe. But if you are looking for real estate, look elsewhere.
Michael Yardney
Metropole Properties
 
Last edited by a moderator:
Reply: 1.1
From: Michael G


Hehe,

Unless of course he can build and sell his own car park spaces :)

Michael G
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1
From: Glenn M


Zak,


I remember a couple of years ago when Carparks were being sold for around $17,000 in one of the CarParks off Fitzroy St.....how times have changed.


GlennM.
 
Last edited by a moderator:
Reply: 1.1.1.1
From: Mark Laszczuk


Zak,
No offence mate, but when I saw that VERY big sign out the front of Metropol with the car park advertising and saw what they were asking, I laughed my arse off! That's totally ridiculous. Just think of this: they have had a very small sign (about a tenth the size of that ad) out the front of Station 18/57 for the last month advertising leasing for the shops inside. I reckon they may be having trouble leasing the shops, if they even have that sign there in the first place. Things might change when they finish the development, but do you wanna take the gamble? Fair dinkum mate, stay away from there. If you want to throw 45K away, I'll happily take it off your hands.

Mark
'no hat, some cattle'
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1.1.1
From: Shaun Latham


Mark, The only way you could make money would be to park a caravan on it an rent it out! Studio's in St Kilda are selling for $200k.
Cheers,
Shaun.
 
Last edited by a moderator:
Top