Garage Investment

[SamCo]

Hi guys,

I am based in Wetherby, Yorkshire and there is a garage for sale. £14000, it is amoung 11 others. Do you think this is a good investment or had I best save the money for something else? Will it go up in value?

 

[Tigercubrider]

Round here (south east ) a garage is about £15 a week
Less than a grand a year so 14+ years to break even.

I guess if the block was sold for house building the value might rise

 

[SamCo]

Excellent point about the house building potential.

 

[JohnD]

round here, a self-store cabin, one-sixth the size of a garage, is £25 a week. If nobody else wants it, you can store your junk in it.

If somebody builds some new flats, or tightly-packed houses with one parking space each, demand for garages will rocket.

 

[EFLImpudence]

Round here (south east ) a garage is about £15 a week
Less than a grand a year so 14+ years to break even.

That rent money, though, will be lost.

Unless you imagine the value of the garage will decrease, then the 14,000 will still be an asset.

Scratch cards v Premium Bonds.

 

[SirGalahad]

That rent money, though, will be lost.

Unless you imagine the value of the garage will decrease, then the 14,000 will still be an asset.

Scratch cards v Premium Bonds.

I imagine he bought it with debt?

 

[MMarve]

It doesn't matter how he finances it, he still breaks even on day one.

Day one
Assets - 1 x garage worth £14,000
Liabilities - debt to the bank of £14,000

14 years later
Assets - 1 x garage worth £14,000, cash in hand generated from rent £10,920.
Liabilities - debt to the bank of £5,000 (depends on the terms of the loan of course!)

Of course there are many more variables such as whether the garage is worth £5k, £14k or £100k in 14 years time, inflation factors etc. But ultimately the question on whether this is a sound investment is impossible for any of us to answer. It is relatively low risk with low gains. The absolute upside, as mentioned is if there is a sudden surge of demand for the land due to home building. so the question should really be if the OP can do anything better with that money rather than tie it up in a garage for 14 years (I don't know why we are using 14 years but lets carry on). I would suggest the answer is 100% yes. If you have a lump sum you are looking to tie up and work for you in the long term, it has to go into the stock market. With the compounding effect as well, it is without doubt the most efficient long term investment you can make. £14,000 into a Stocks and Shares ISA, put it in a tracker fund if you want low cost and low risk or pick a fund manager (not Neil Woodford!) if you want higher risk. Sit back and update this post in 14 years with how much it is worth.

 

[motorbiking]

You need to consider the legal fees, any obligations to maintain the shared spaces and any covenants that may exist. Search the local papers for going rates for people renting out garages and also compare house prices with and without.

You can get about 1.5% for your cash so over a 10 year period, taking account of legal fees - do you think it will be worth more than 16,500? in 10 years

If you can get some rental income from it great.

 

[ellal]

On the off chance that it has power.

Is it either big enough for a car or has it standing space in front?

Because with all these electric cars apparently around the corner, that might make it worth a bit.

 

[SamCo]

On the off chance that it has power.

Is it either big enough for a car or has it standing space in front?

Because with all these electric cars apparently around the corner, that might make it worth a bit.

- Well I never thought of that one either. Thanks for the input mate

 

[securespark]

It would need a potentially beefy supply to charge a car.

 

[ellal]

It would need a potentially beefy supply to charge a car.

Depends how fast a charge you need.

Overnight up to 16A, faster Charge 32A