Buenos Aires Parking Garages
Real estate has long been a popular investment option, but generally investors look to apartment or office buildings. However, it may be time to look toward a different kind of housing: parking garages. Depending on the neighborhood, about USD 15,000 can buy a car storage space, which normally allows an income of about 7%, making garages and parking lots a great option for investors.
Prices for car storage have recently risen between 15% and 30%, due to the increases in building fees, insurance and running water. Now, keeping a car garaged could cost anywhere between $600 and $1000 pesos per month in the most sought after neighborhoods of the city, and even the less popular areas won’t fall below about $350. Parking garages in the city center also charge by the hour and by the day, usually around $15 per hour.
This type of investment is not immune to the economy, it should be noted. However, investors are still finding this option to be more and more viable. Furthermore, brokers are touting the great potential for success in building new parking garages, especially in the areas with a higher demand, as the new structures can be either sold or rented out.
For smaller scale investors, buying individual garages could be the best choice, as it yields a relatively high income. Such purchases can be made with little money, and can bring returns of over 7%, in dollars. Note that the cost of such a garage could cost about a third of the standard price of a 50 m2 apartment.
The most expensive garages lie in Puerto Madero (around USD 30,000), Palermo and Belgrano (around USD 23,000), and Almagro (typically USD 15,000). Those prices may seem high, but these small structures are currently in high demand. In recent years, over 500 parking garages have been demolished in the capital to make room for new buildings, on top of which, the amount of vehicles in the city has grown, as well. In 2009 alone, over 500,000 new cars were sold in Capital.
In addition, investing in garages and parking spaces affords more liquidity than a larger real estate investment. No contracts are necessary, no potential evictions. In general, the operations are seen as fairly liquid, making it a good option for investor’s who aren’t comfortable with making a more substantial investment.
However, as with all property purchases, location plays a large factor. Of course the city center is going to be most affected by the lack of parking, but many other areas also have deficiencies that need to be filled, such as Retiro, Recoleta, Barrio Norte, Palermo, Caballito and Belgrano.
Of course, other factors play into the price: Covered spaces are going to be much more valuable than uncovered, and of course it depends on the quality of the building. However, some of the more advanced technologies often mean higher expenses, as well as more frequent breakdowns, which will be inconvenient to the vehicle owners.
As with any such investment, the most important thing is to consider all the expenses versus the projected income. There is a multitude of options out there, though, it’s just a matter of finding the one that’s right for each individual investor.
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