car space or not ?

[WebBoard]

From: Anonymous


Hello to everyone,
I just bought an apartment in Melbourne CBD. This entitles me to a car space in the underground carpark for $45,000. I intend to rent it out until we retire (then we may live in it, but we don't want a car). Do you gurus have any suggestion whether it is worthwhile to buy the car space ? Thanks in advance.

 

[Anonymous]

Reply: 1
From: Anonymous


What can you rent the car space for?

 

[WebBoard]

Reply: 1.1
From: Anonymous


Hi,
I did not make it clear. We will rent out the apartment, the car space is just an extra and we have no idea what to do with it if the tenant does not want it. I am thinking more in the way of whether it will be easier to rent or to sell a CBD apartment with a car space than one without.

 

[Jester]

Reply: 2
From: John P


If it's not a closed carspace, then clearly renting it out as self-storage is not an issue but if the tenant does'nt want it or does not have a use for it I would personally buy it anyway and charge the rent accordingly. I am sure that the majority of future tenants will want a carspace and you are, after all buying to hold it over the long term so why skimp?? That's my 5 cents worth anyway.

John

 

[paulzag]

Reply: 2.1
From: Paul Zagoridis


I agree with John

You should find that the rent inc car space offers a better yield than the rent without car space.

You can rent separately, but if you do I'd make sure the car space is on a longer term lease (don't like vacancies in car spaces).

Paul Zag
Dreamspinner
Oz Film Biz is at
http://www.healey.com.au/~paulz