buying a car park

[bright gravity]

I have some money which I intend to invest in property but I have ALWAYS fancied the idea of setting up a car park. I am sure the returns on this would beat rental income, but obviously I don't know where to start!

So, I thought I would ask on here to see if anyone has any experience in this area/any advice on getting started?

Thanks

 

[Paul Norman]

The first thing when investing in a car park is to carry out a survey to see how many former kings and queens have been buried under it.

 

[filtee]

I have some money which I intend to invest in property but I have ALWAYS fancied the idea of setting up a car park. I am sure the returns on this would beat rental income, but obviously I don't know where to start!

So, I thought I would ask on here to see if anyone has any experience in this area/any advice on getting started?

Thanks

I've also looked into this and would imagine they'd be a nice little earner. Only if it was in a city centre or busy town though.

 

[StevensOnln1]

Surely if someone has some unused land sat idle, with it being viable and planning permission obtainable, they would have already set up their own car park. You'd probably struggle to find any suitable location where the local council would grant planning permission, especially when many councils are hell bent on trying to remove cars from town centres.

 

[filtee]

NCP and ECP will rent land short term on whilst land is vacant. ie In city centres where buildings have been demolished but yet to be built on.

 

[filtee]

Surely if someone has some unused land sat idle, with it being viable and planning permission obtainable, they would have already set up their own car park. You'd probably struggle to find any suitable location where the local council would grant planning permission, especially when many councils are hell bent on trying to remove cars from town centres.

I disagree on all of this. Why 'surely'? Do most people think of car parks? And the councils will do anything to make money so im pretty sure theyd rent land out for whatever reason.

 

[Talay]

My train station car park charged £800 two years ago. Last year it was raised to £880 and this year it is £1040. I suspect next year it will be £1200.

It is jam packed, fully season ticketed and seems inelastic to price rises.

 

[moneybaker]

I have some money which I intend to invest in property but I have ALWAYS fancied the idea of setting up a car park. I am sure the returns on this would beat rental income, but obviously I don't know where to start!

So, I thought I would ask on here to see if anyone has any experience in this area/any advice on getting started?

Thanks

If it doesn’t work out as a car park you can always turn it into a car wash.
Depending on how big the space is.

 

[filtee]

If it doesn’t work out as a car park you can always turn it into a car wash.
Depending on how big the space is.

Nah, unless its gonna be a purpose built nice looking thing i wouldnt bother. Im talking from experience. I used to own 3 car washes and the hassle is not worth it. In theory you can make loads of money but you dont.

 

[Dannko]

I think, buying a car park isn't a bad idea. Try to do this and tell us then.

 

[jim_gold]

Generally car parking businesses are often quite profitable, and we have seen them achieve high prices... in one case (a large operator) selling for a multiple of 23 (albeit about 12 years ago).

There are plenty of rules of thumb in this industry.
- Parkers generally prefer flat surface car parks, rather than multi-storey car parks or underground car parks;
- Long-stay and commuter parkers are often price-sensitive, don't care about conveniences;
- Short-stay parkers are less price-sensitive and want to be very close to where they are shopping
- The occupancy time for stays in public car parks range from less than 30 minutes at a local convenience car park to around 2 and a half hours in a city car park
- Occupancy levels seldom rise above 60%

Your focal consideration when thinking about how much to pay is the proximity of the main traffic magnet.

 

[Esk247]

imo it will come down to the council and planning permission.

Buying land isn't too difficult, even in some town centre locations. Planning though..well..that's a whole can of worms. They're very funny around here about ANYTHING that involves changing the status of a piece of land. You can't tarmac anything without permission, you can't cut down trees without permission etc. Locally speaking anyway. Even putting a sign outside your shop on your own land gets you a £50 slap.

 

[bright gravity]

Thanks for the interesting responses, only just had the chance to read through.

Nah, unless its gonna be a purpose built nice looking thing i wouldnt bother. Im talking from experience. I used to own 3 car washes and the hassle is not worth it. In theory you can make loads of money but you dont.

Always wondered about how well car washes do.. not that I intended to have my own but interesting to know its a bit of a nightmare business.

Generally car parking businesses are often quite profitable, and we have seen them achieve high prices... in one case (a large operator) selling for a multiple of 23 (albeit about 12 years ago).

There are plenty of rules of thumb in this industry.
- Parkers generally prefer flat surface car parks, rather than multi-storey car parks or underground car parks;
- Long-stay and commuter parkers are often price-sensitive, don't care about conveniences;
- Short-stay parkers are less price-sensitive and want to be very close to where they are shopping
- The occupancy time for stays in public car parks range from less than 30 minutes at a local convenience car park to around 2 and a half hours in a city car park
- Occupancy levels seldom rise above 60%

Your focal consideration when thinking about how much to pay is the proximity of the main traffic magnet.

Jim, useful response. My next step is having a hunt around for land, also will my friend who works for a council to get his views on how challenging it might be to get approval - obviously every council will be different, but will be useful to know the general consensus.

 

[Dave.F]

Here is an interesting story and a problem you could face: http://www.whatsamsawtoday.com/2011/03/16/the-town-centre-car-park-for-sale/