Investing in Car Parks

So you’ve probably seen or heard people are investing in parking spaces recently most of them near an international airport but why would you invest you ask? Well if we think about it very simply when was the last time that the price of parking went down? Exactly and that’s why everybody and their uncle are buying up these spaces. They're great for first time investors because of the low entry levels some as little as 10K and of course you will receive a deed from the UK land register to prove you own the space or property if you will so even if the company you purchased from goes bust or disappears you still have your parking space.

On top of that with most of the parking investments here in the UK you are looking at a minimum return of 8% - 9% p/a which in today’s markets is much better than an ISA but at about the same risk level. Tax is also another reason many people are choosing to invest in this area right now as many schemes are SIPP approved which means you can invest funds from your pension pot so what that means if you invest ￡8,000 the government automatically adds ￡2,000 (20%) basic-rate tax relief increasing your total contribution to ￡10,000 and it works out even better if you are a higher or additional rate taxpayer.

So thinking about it who wouldn't want to invest in what is quite possibly the next big thing? If you would like to know more about how investing in car parking could benefit your portfolio please drop me a line any time.

Liam Harvey