Posted by
monomono
7 yrs ago
As a PR who has not bought property yet, I'm wondering if parking spot(s) would be a better way to get into the market.
Where I live, I can get 5-6 spaces for the price of my unit. The rental yield for parking seems the same, a little higher in fact, than residential units.
The estate is ~30 years old so renovation and repairs will be significant on a unit. Zero on a parking space. There is also the advantage of being able to fractionally increase/decrease investment by buying/selling spots, whereas I can only afford one flat.
Not sure how stamp duty would work if I buy 5 spaces, however.
Would appreciate any advice. Thanks in advance.
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Just to follow up, looked into stamp duty and it appears that I can avoid the higher rate by buying several parking spaces in a single transaction. However I will not be able to buy other property before disposing of them all, which is a potential downside of this idea.
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Baap
7 yrs ago
You cant make a mortgage on parking spaces.
Also, theor pri es might drop as much as those of flats.
These might be the drawbacks. But as u have written, there are also advantages
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Talked to HSBC and yes, they will give a mortgage on a parking space, but need 60% down.
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Baap
7 yrs ago
Interesting.
What is the interest rate? Same as for a flat?
Also, are there any restriction? For example, do you need to live in the same building?
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It was prime - 2.65% iirc, 30 year term. But he said it will depend on the exact details of the space, building etc. I don't believe there are any restrictions about where you live.
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Baap
7 yrs ago
When I asked a few years ago it wasn't possible.
Be warned that HSBC promises things that they don't maintain, and charge you for stuff they didn't tell you they would. They might have other overheads beyond the P - ...
Anyway, you got me interested. I shall ask again how much the parking lot in my building is. As far as I know, its price has doubled over the last 5 years, so it's no longer such an interesting investment.
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