Would You Pay $190,000 For A Parking Space?

Parking rates are high, but I'm not sure they're high enough to justify paying $190,000 for a single car space in Sydney makes sense. But even the cheapest inner-city spots routinely sell for $40,000. Would you be tempted to buy at that price?

Picture by Simon Sees

We've recently highlighted how much costs vary for casual parking in different Australian cities, so it's clear that there's rarely a cheap way to get a car into the CBD. But $190,000 would buy you an awful lot of taxi trips.

I'd like to know: have you ever purchased a car space, or considered doing so? What was the main reason, and how would you set a budget? Share your thoughts in the comments. (I also discussed this issue on Ten Breakfast this morning; you can check the video here.)


Comments

    Did a quick calculation, as long as a parking space available for rent less than 700 a week, its not worthed to buy it, but then again, if your parking space rent is as expensive as 700, i rather live near where i work

      Forget about my borked comment, i blame lack of coffee lol

    Only if it could be converted to a storage locker and I could live there with my Russian nuclear fuzz grunge guitarist room mate.

      Yeah, but who wants to live out near the airport?!?

    A permanent car park in the Brisbane CBD costs about $10k a year rent. In regards to the $40k spot, 4 years payback and a salable asset at the end of it doesn't sound too bad to me. Saying all of that, $196k seems a stretch.

    i won 4 parks in brisbane = lowest i paid was $25K and the most was $43,500. hvae had the longest for 12 years now and have definitly made my money on them - you buy the parks and lease them back to the parking companies for set time periods. there was one i used my self for 18 months when i was assignedt oa cbd office and it was so handy to have a private space

      that should be own, not won

    My brother-in-law bought a car park in Sydney CBD near his company's HQ for $85,000 about 5 years back. I thought he was f___ing drunk to buy someones dingy basement, obviously it was a steal.

    There was one in our building for sale around 2002-03 for $7,,500. My wife & I joked at the time that it would be the only real estate we could ever afford in inner city Sydney. We so should have bought it. It would be worth probably $50-$60K now & would get $60-$80 a week rent.

    Didn't we recently have an article saying parking was $75 a day in Sydney?

    If so $75 x 5 days a week x 52 weeks a year = $19500. That's about 10% return a year. Not too shabby. At $50 a day you'd get about 7% a year back, which isn't too bad either. Plus you can factor in appreciation later on!

    Wow in our little town here in tassie were all complaining about the parking rate rise from $1.40 an hour to $1.60

    If you can get a good return it could be a viable investment. I imagine the outgoings would be proportionately smaller to that of, say, an investment property. And pretty much zero ongoing maintenance!

      The office I work at rents some for hundreds a week in a long-term contract, so it could definitely be viable. It's not far off what you'd get in rent from a small unit.

      Unfortunately a quick search turns up nobody nearby selling. Either everybody is making too much cash to bother selling, or I have to find and negotiate with specific companies.

    My actual house,bought two years ago, cost $182k. Here's to living in the country! :)

    Guys I want to buy one Car Spot as my company would hire it from me. I guess it is not a bad move. Not sure who to contact to buy one in Brisbane CBD

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