Investing in parking: how to buy smartly

Posted November 15, 2023 at 8:53 amUpdated November 15, 2023 at 9:03 am

As with a traditional investment, a good location is one where there is strong rental demand. Your goal should be to rent quickly and well. And for this, it is better to buy an expensive but well-located place that rents out quickly and well than a cheap place in an area where demand is low. City centres, mostly old, are still the main locations where rental demand is strong: private underground parking is rare and outdoor parking is very expensive. However, these data do not exclude the consideration of marginal places, especially if your choice concerns a box or garage. The property will have the advantage of selling for less, but still expect to find a tenant will take longer. Be careful of areas near free parking or areas of recent buildings, as these necessarily have underground spaces, reducing rental demand. Therefore, a little market research is essential before you start. The best test is to visit during peak hours and check out the street parking options. You can also post a fictitious ad for the rental of a parking lot that you are considering buying and watch the return. You should know that the potential of renting a parking space is appreciated in a very limited area. It is assumed that the future tenant will live either in the house or in the house next door. Basically within a radius of 100 meters around. In addition, your property must be at least a box or a garage.

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