What can you do to make use of this opportunity?
Car parking spaces are, arguably, an unusual investment option. By buying a parking space and giving it on a lease to an individual (or a ‘tenant’), you will be assured of significant returns through the rentals accrued annually. Even the monthly rentals can be a source of significant income for people who are looking for additional sources of income or those who are retired.
Another option is to lease out the parking lot that you have bought to a management company which is then responsible for finding tenants and sub-leasing it out to them. The responsibility of getting the monthly rental payments on time would then be in the realm of the management company. This saves you the hassle of identifying and finding a potential tenant and making sure the payments are done on time.
These kind of investments offer an 8% rental yield over the first year to two years and can be bought with a minimum investment of about $40,000. If you are looking to seriously invest in parking lots, it would be wiser to do so in such cities that are really hotspots for shopping as well as residential areas. You can invest in individual plots as well as in a car parking project along with others. If you are investing in individual parking lots, then it should be done in areas where there is huge demand for parking spaces.
Compared to other real estate investments that require a lot of capital, investment in car parking requires comparatively lesser amounts of capital and yet give a very good return on investment almost immediately.
Another way to make sure your parking space will be a good investment would be to develop a certain building or area as a car parking garage or car parking lot, wait a couple of years (or even months) and sell it to developers who are looking for land to develop within cities and towns. Car parking garages and car parking lots are often the spaces that turn out to be more attractive to developers and they will be willing to offer you very good prices, which will more than make up for the modest investment you had poured into the project in the first place. This is one sure-fire way to ensure that you not only have a solid real estate in your name, but that it will gain you hundredfold return in a very short period of time, making your entire transaction more than worth it.
In places like London, New York, Dubai, among many other cities, where the rich are getting even richer, amass more cars and more residences, there will never be a time when parking lots are not needed! The earlier you invest in real estate through parking lots, the smarter your investment will turn out to be the span of a few short years, and you will have nothing to regret in the long run about investing in parking lots!