Mention property investment and most people think of a conventional house or apartment. However, there are other types of property investment opportunities which may appeal to those with a little more imagination!
In this article, we share some out-of-the-box ideas you may not have considered. Remember, we can assist with finance for all different types of property investments, including those with a twist.
Car parking spaces
In capital cities such as Sydney and Melbourne, car parking spaces in the inner-city are often in high demand. That, coupled with limited supply, makes for an attractive investment opportunity.
The potential benefits of investing in a car parking space are that you can reap an attractive rental income, without incurring costs traditionally associated with residential investment properties.
Prices for car parking spaces vary. However, generally speaking, they tend to range from $40,000 to $130,000 in inner-city locations .
To give you an idea of the returns, a lock-up garage parking space in Lonsdale St, Melbourne, could bring in $922 a month. Likewise, a secure car space on Clarence Street, Sydney, could rent for $1018 a month
1. Understand the potential costs involved in owning the space (for example council rates, strata fees and congestion levies)
2. Find out whether any planned developments could affect your investment
3. Make sure there are no restrictions about renting out the space before proceeding.
Converted or quirky properties
If you’re looking for an investment opportunity that’s outside the norm, how about a converted property, or one you could transform? As an example, check out this former fire station in Petersham, Sydney. It was converted into a private residence and is now set to become a beautiful boutique hotel.
1. If you’re converting commercial into residential, make sure there are no planning or zoning constraints
2. Research the tenants and end-market you’re trying to attract – not all converted properties will offer wide appeal
3. Be sure to factor the costs of converting the property into your budget.
Mixed-use properties are zoned for more than one purpose. Common examples include retail properties with apartments upstairs, converted warehouses with a residence, or freestanding houses with a shopfront.
As an investor, mixed-use properties can offer income streams from both residential and commercial tenants. They also help you diversify your investment portfolio, as you’re investing in two different markets simultaneously. If one market falters, you still have the other to fall back on.
1. Consider your plans for the property and make sure it is zoned and fit for your purposes
2. Keep in mind you’ll require a commercial loan rather than a residential one, which may come with a higher interest rate and shorter loan term.
Talk to us about your plans today
If you have an idea for an unusual property investment, it’s important to talk to us early on. We’ll look at the numbers and help you decide which type of finance is right for you. Remember, we offer advice on all types of loans for property investment, so please get in touch.