New home buyers and potential property investors should think of ways on how they can make their properties turn into money making assets. News.com.au exposed a story about a garage in Sydney’s harbourside location which has listed with an asking price of $120,000 – to put that in perspective the garage is worth more than buying the latest BMW X5 and the garage doesn’t depreciate.
As cities become more and more crowded, parking becomes a rare commodity that’s why having one could potentially be an asset in its own right or increase the value of one’s property especially when it is in a good location.
Having an extra space in the lot and turning it into a rentable garage could also add more money to the owner’s pocket which could in turn help pay with the home loan. People still paying off their home loans were once advised to add extra rooms in their properties to be rented but for those who are not really into the idea of having someone they don’t know live in close proximity with them; a garage would be a great alternative.
In February, 2010 the most expensive parking spot, which was sold for $240,000 in Sydney, was for a garage in Bondi Beach. The sale proved that there is a market for parking areas, something people and real estate agents never expected. In the eastern suburbs, the going price of a garage on a separate title is said to be from $50,000 to $100,000. According to estate agents lock up garages on separate titles are rare and are highly sought by buyers, selling only in a matter of days.
Laing and Simmons Potts Point’s Nuri Shik on one property. “I sold a studio once which had a parking space and I listed it as a ‘lock up garage with apartment attached’. We’re currently selling a 14sq m car space on Bayswater Rd, Potts Point which is expected to fetch more than $49,000, but a lock up garage could sell for about $100,000.”
Before you run out and start making offers on parking spots talk to your mortgage broker as there are many implications in arranging finance for this kind of property.