buy parking space

How do I buy and make a car park profitable?

Buy a parking space, an alternative investment to that of real estate. Indeed, it allows to invest with a more limited budget than when buying a home. Buying, requires to have some starting capital. Choosing to buy a parking space is then interesting to make an investment especially in cities where real estate has an upward trend. But how to do it and what are the benefits of this investment?

Parking space, an advantageous investment


In the territory, transactions for parking spaces have remained stable over the last ten years. According to the website Bien, here,there are 10,000 sales of parking space in the Ile-de-France region. However, still in Ile-de-France the trend for this type of purchase has seen an increase in the selling price of 50%. But the increase in the selling price is less than that of the house market prices which have increased by 182%.

Thus, it is still more advantageous to invest in this sector and to buy parking space when one has a small budget. Indeed, to buy a parking space, the average price is about 21,400 euros. The desire to buy is also due to a desire for profitability. For example, a parking space is rented between 100 and 250 per month and in the provinces between 50 and 130 euros per month. The costs inherent in the property are less since they are on average 15 euros per month. The same applies to maintenance costs that are limited. However, condominium charges must be taken into account if the parking space is in a building. Thus, the profitability of a parking space is 5.8% but depending on the area it can be more interesting reaching a profitability of 12%.

In addition, buying a parking space has advantages. This purchase is easier than buying a property. Indeed, the rental conditions are more flexible and allow for easier management. It is possible to rent easily between individuals, with a simplified lease since it does not require to set a term for the lease. Unlike the lease of a dwelling, the landlord or tenant can break the contract at any time.

From a tax point of view, there are also advantages. The small size of the surface involves limited tax costs. However, this area implies high notary fees since they are calculated on a fixed basis which can increase the purchase price by 20%. To make your investment profitable, it is therefore important to make the right choices. It is therefore wise to invest in an area where the demand for parking is high, especially in some city centres.

achter parking space souterain
Buying a parking space can be a wise and profitable investment when it has a small budget

Choose where to invest in a parking space

So, for a profitable investment, you have to think about choosing the area in which you want to buy. Demand and competition must be taken into account. Indeed, in some cities access to cars is restricted and the supply of transport is plentiful which push users to part with their vehicles. However, in other cities, the high cost of parking and high parking spaces allow rental car parks to benefit from unprecedented attractiveness. In this sense buying a parking space is interesting.

For several years now, the city of Bordeaux has seen its paid parking area expand as it has grown. In 2018, a new parking policy was introduced and imposed all-pay parking. Today, paid parking is still controversial as the city’s new mayor, Pierre Hurmic, plans to introduce solidarity pricing. This pricing could be based on the income of each motorist. Considered discriminatory, it is highly controversial by Bordeaux motorists. The demand to rent a parking space within the city is strong. To meet this need many individuals offer their property on rental sites.

Thus, buying a parking space can be an interesting investment project for those with a limited budget. However, in order to make this investment profitable, care must be taken to make the right choices to quickly find a tenant. In addition, it is also important to take care of a few details to stand out from other rental offers. In particular, it is best to invest in a covered or closed car park to protect the vehicle that will be parked there.

Sources:

(1)“Investing in a parking lot: is it profitable?”,Well, here

(2) “Parking on public roads”, City of Bordeaux

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