Do you have some savings and would you like to invest some of your money? Have you decided to take a step into the world of investments?
Investing in a house or an apartment is not within everyone’s reach, but a more affordable and safe first step is that of parking spaces.
Why invest in a parking space?
Their prices are much lower than that of houses or commercial premises
High demand depending on your location
Low maintenance costs
Experts say that investing in parking spaces is a good idea. However, some things must be observed.
We explain them to you in this article:
Details to consider
As with all investments, we will have to take some aspects into account to ensure its viability.
We will have to focus on the concept of “parking demand”.
The graphic definition of this concept could be defined by the time you have to spend driving around with your vehicle before parking and without resorting to public parking.
In cities like Barcelona there is a great demand for parking. The increase in green areas and the increase in blue or green zone car parks has made the need to have a parking space for private use more than necessary.
This high demand is found in all neighborhoods of the city.
That’s why we will have to put the magnifying glass on the good opportunities that arise, especially in the neighborhoods or areas with the most growth projection.
The maintenance costs of a parking space are significantly lower than those of a home.
However, we will have to inform ourselves of the total costs that will be incurred to maintain the parking space.
However, a parking space will never have the problems that a flat or a house can have (installations, structural problems, moisture on the facade or roof…) It is also important to note that no initial investment is needed to rent a parking space, as is often the case with flats and houses, which must be renovated before being rented.
The rental market for parking spaces is much less regulated than housing.
The rental of parking spaces is regulated by the Civil Code and not by the LAU.
Therefore, the duration of the contract, the rent price and the conditions will be established in 2 parties between the tenant and the landlord.
Risks of investing in parking spaces
The risks of investing with parking spaces are much lower than those of investing in housing, however, among the risks that we must take into account when purchasing parking to rent are:
- The fluctuation of market prices
- Non-payment by tenants
- Let its market price decline
- Lower the demand for parking spaces.
We must also take into account the expenses caused by renting a parking space:
- Payment of the corresponding taxes
- Include the tenants’ monthly income in the income statement
- Payment of the community fee
- The payment of the IBI
- Garbage fee (if applicable)
Is it profitable to invest in a parking space?
As always, the answer depends on the factors playing in your favor, but we can say that YES it is profitable.
It is a much more progressive and short-term investment, less profitable than a purchase of other real estate. But it is much safer in the long run.
The process of renting a good parking space will be quick and easy. Since the need to have spaces to park is still on the rise, especially in cities like Barcelona.