Investing in a parking lot is not “not always profitable”warns Éric Allouche, executive director of the ERA Immobilier network. Like any investment, the operation involves risks and strong disparities depending on the property. But it has a major advantage: a limited entry ticket, ” between 10,000 and 50,000 eurosor even a little more for more quality car parks in the most tense areas »far from the budget necessary to acquire housing.
This low amount allows individuals who do not have the down payment or borrowing capacity to purchase an apartment to start building assets. Especially in areas where demand for parking remains strong, the value of spaces increases and rents follow. “It’s an excellent way to invest and get started, provided you think like a tenant and accurately calculate profitability”insists Éric Allouche, who recalls that certain well-chosen car parks can still bring in “ 6 to 7%or even more ».
The entry ticket and profitability make the difference
First case where the investment remains relevant: when the purchase price/rent ratio is favorable. A parking lot purchased around 15,000 to 20,000 euros and rented between 80 and 150 euros per month can offer an attractive gross return, especially if expenses are low. “You can very well have a very small contribution and borrow to buy a parking lot. Since profitability is almost guaranteed, it is easy to see what this will bring in”underlines Éric Allouche. Conversely, in areas where prices have soared without rents following suit, such as certain areas of Paris, yields are clearly declining.
Location, accessibility and security: putting yourself in the tenant’s shoes
The investment remains profitable, especially where parking is difficult: dense neighborhoodsproximity to stations, areas where the scarcity of parking is evident. But the location still needs to be attractive for use. “You have to put yourself in the shoes of the tenant”insists Éric Allouche. A closed box, easy to access, with paths wide enough to open the doors without hitting the neighboring vehicle, and equipped with an effective security system will rent better and more expensive than a simple cramped space in a dilapidated basement or one prone to infiltration. Compared to neighboring car parks, it will also be necessary to remain competitive on price.
Do not neglect taxation, charges and the heritage effect
Even modest, a parking lot remains real estate subject to the property tax and taxation of property income. “It’s a land investment, with land income”recalls Éric Allouche, who advises integrating into his calculation the co-ownership and maintenance charges attributable to the owner. Once these costs are deducted, some car parks maintain a higher net profitability than other low-capital investments. Beyond the annual return, the interest is also patrimonial: “If you have two or three car parks, it’s an excellent way to build up assets”he concludes, on condition of remaining selective on the quality and location of the locations.
