Good Idea to Invest in Car Parking Lots?

Many people feel that one highly generated profit in the real estate business is the car park sector. Why they are thinking like that? It’s because there’s just minimal maintenance and low labor cost (or even none), so running a car park business can gain great return in long term.

Invest in Car Parking Lots

From what I’ve surveyed recently, nobody is sure about investing money into stocks, bonds, and mutual funds. So, they are searching for new investment opportunities and one of the new ideas for them is investing in car parking lot. Yes, one of the nice things about investing in car parking lot is that there are lots of different investment sizes that you can make. You can make your own decision whether to purchase a small number of spaces or hundreds of spaces. Thus, this kind of investment is more versatile.

But for me, I will not say that car parking lot investment is the best investment vehicle. Why I am thinking like that? If let say you bought the car park lots which cost you RM 15,000/lot and rent it out at RM 100/month, from the calculation it seems takes 12.5 years to recover the investment capital and there also the tax on the rental income? I feel that invest this RM 15,000 on other investment can help to generate better income.

Invest in Car Parking Lots

Without a shadow of a doubt, I think investing in car parking lots is not exactly attractive. If you want a solid and stable investment, it should be ok, but as it think it’s impossible to get a mortgage on such type of investment, and you need to have own capital which makes it unattractive to me. Besides that, I also wonder how liquid of this kind of investment would be – is it easy to sell car park spaces? I am just sharing my thought; you may or may not follow my opinion!!!

5 thoughts on “Good Idea to Invest in Car Parking Lots?”

  1. Well, they worked out quite profitable in some countries.
    Share my experience with you, i had a chance to involved in a car-parking business in Vietnam in 2009. We were there to give technical consult and design on the car-parking management system.
    Our client is managing several car-parks of the hospitals, they only charged 2,000VD per entry for motorbikes, which is equivalent to RM0.40 (FYI, Vietnam road is flood of motorbikes, more than you can imagine). They served 1500 to 3000 bikes per day. That makes up to RM600 – RM1,200 each site each day. They’re running more than 3 sites and still growing. Is this a good business to invest? Well, it’s your call… 🙂

  2. RM100 per month is 8% of ROI, which is good enough, especially at current interest rate market. Provided the parking lot is sale-able easily.

  3. I was recently in Miami for Ultra Music Festival, the parking lots there were charging $40 a spot.

    It was pure gouging but there were at least 100+ cars in each lot.

    I think it would be a great idea.

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