古惑強

Let take the simplistic view of renting out the parking space, after paying out the management fee / land tax / Govt tax / vacancy gap, you only get 10 months rental per year.                                               

With monthly rental at $1000        p.m.   annual yield is 2.50%
With monthly rental at $1500        p.m.   annual yield is 3.75%
With monthly rental at $2000        p.m.   annual yield is 5.00%

If you can get rental charges at $1500, in today's low interest rate environment, it is an ok investment.  If you can get $2000 p.m., then it is a very reasonable investment.  If you can only get $1000 p.m., I won't bother.

古惑強

At $2.2K p.m., that would give you a min. yield of 5.5% p.a., if it is self-used then return rate is slightly better as there is no vacancy rate to discount.

Flip the coin and say if you seek a bank loan from a bank to get financing, basically you will need 50% down payment, and as long as you can get an overall borrowing rate below 5.5% for the remaining amount, you wil be enhancing the overall return on your investment.

Put it very simply, you would be taking up interest rate risk + market price risk vs future inflation risk.

古惑強

車位好似冇咩Bank受10年供.....
greenbug 發表於 2010-10-5 17:02

10yrs should be okay, for
the interest rate you should budget a bit higher, as banks normally  charge a higher interest rate for car park, since it is regarded as investment..