Garage Crazy
I am often asked what the best property investment is and it’s a question that I struggle to answer. Are you looking for a large project? The highest yield? Or would you prefer something that will tick along nicely with very little hassle? Only you can decide what will work best for you however I can say that recent auctions have shown that there is a high demand for lock-up garages.
Whether used for parking or simply as self-storage many often overlook the huge potential single garages and sites have. These sites can often be high yielding and, in some cases, far more affordable to investors than a typical two-up-two-down or commercial unit.
As many of you are aware increasing legislation in the private investor market can make renting out a property seem like walking through a mine field. However, in terms of usage, garages are not seen as residential or commercial meaning that there is relatively little legislation governing their management. This makes garages a fantastic way of entering the world of property investment without having to commit to spending large sums of money or taking out a mortgage.
A few examples of lots sold recently are Garage 4, rear of 103/133 Vigilant Way in Gravesend which was offered with a freehold guide price of £9,000 to £10,0000 and sold for £17,500 last year. Garage 28, Lymington Court, Bicknor Road, Maidstone was offered with a guide price of £9,000 Plus and sold February this year for £12,000. Having previously been let at £75 per calendar month this worked out at a potential 7.5% return for an investor. Moving to larger sites we had Garages 19-22, off St. James's Road, Gravesend – a block of four garages guided at £45,000-£50,000 and selling for £54,000. Taking into account a £4,020 rent this works out as a 7.4% return on the investment.
It is easy to see why the demand for these types of investment properties are increasing so why not take a look at the Lots on offer in our upcoming March auction and find your next investment property.
Chris Milne
Auction Appraiser
