Investing in car parks: a good vehicle for income seekers?
If you could find an investment guaranteeing 8% and based on ‘hard’ assets would you be interested?
With interest rates relentlessly hovering around zero, you probably would, but you might not immediately think of car parks as the place to look.
A growing number of disillusioned savers are choosing to put ‘non-traditional’ investments into their Self-Invested Personal Pension (SIPPs) and car park spaces are among the more left-field examples.
The rationale behind the idea is that as the number of cars increases – motor organisations say there will be 39 million more vehicles on British roads alone by 2030 – demand for parking will soar. However, as there is only a finite amount of space in urban areas for car parks, demand is expected to handsomely outstrip supply.
Investors can take advantage of this trend by purchasing an individual parking space and leasing it out to a tenant for a period of time. Often this tenant is a management company which then sub-leases it to customers on an annual basis.
For more detailed information please call 0044 1202 702255