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.
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.
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!!!