Is it worth to purchase a unit with three car park lots?

Purchase of property for renting out purpose. Renting out the unit to tenants

is it worth to pay for the third car park lot, eg. need to pay extra RM20k

This post has been edited by Blofeld: Oct 24 2021, 03:10 AM

To recoup your investment, lets say the rental is 150 pm, you need about 11 years to recover the 20k.

That also depends on whether the car parks are tandem or side by side.

On the other investment side ...eg FD...@ 2% pa ... at end of 11 years, you will have 4.4k interest and plus the principal .... 24.4k

This post has been edited by mini orchard: Oct 24 2021, 01:04 PM

For investment, no, RM20k is a big amount for a carpark that may or may not be used, as above mentioned it'll take a decade at least to recoup the investment + it won't cover the loan interest.

Only buy if you're big shot/big family with many cars.

Thanks

True also

Some may not be driving cars. Some may just ride bikes.

Depending on the type of property and intended tenant profile also, if it's TOD/near public transport and you're renting to students/young working adults, the people who rent most likely won't be heavy car user and won't have a car because it's added cost.

Side point - you might have to compete with the JMB / developer as well if they hold extra slots for themselves.