Parking spot for investment?

Hello my dear moustachians!

Following the reading of the book of our guru Mr MP, I discovered the Swiss website Anibis and in particular it’s sections for real estate. One of the post on the site I just discovered is mentioning a parking spot for investment, in a city not far from Yverdon. The thing is they claim a return on investment of 5.66% on 10 years for an initial price of 30’000 CHF.

What do you think of this kind of investment? Could it be good for a beginner / small investor ?

Looking forward to read your thoughts !

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I thought about buying one as well - ideally the whole Parking 1 at Zurich Airport :smiley:

I think, as long it is a plain parking space without much infrastructure (parking garage vs. parking spot outside near to city center or rented out long term somewhere in the neighbourhood) it could be an interesting opportunity. Nothing much there, what a tenant could destroy :smiley:

Edit: there is probably no leverage possible or only with a high interest rate, what does not make sense. With a yield of approx. 5% you need to rent out the parking space for 20 years to be break even…
Moreover, there could be risks like Yverdon is not accepting cars and bikes anymore within the city center or are setting up other restrictions.

Ahaha the whole Zürich airport !! I really wonder what could be the price :slight_smile:

But you are right … in my case if I rent it at 120 CHF / month it would take 20 years to reach the initial price of acquisition. And only after that we could make a profit …. Meh :frowning: not a big investment plan ….

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Don’t forget the rent is taxed as income.

It only makes sense IMHO if you can use the parking spot to increase the value of your home.

E.g., you buy an apartment and you have the opportunity to buy a second parking spot. You might even be able to include it in the mortgage.

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Not a hassle-free investment. Tenant turnover and the recurring administrative overhead should not be disregarded. Service charges are also a factor (parking garage). I wouldn’t want to get bogged down.

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