Car Park Investment opportunties
Discussion
A friend is thinking of investing £40k of inheritance in airport car parking, and has asked for advice. I've suggested a few due diligence questions, but I can't find much about these investent types online, and it's not something I'm familar with. It's apparently been recommended by an IFA.
Does anyone have any info on this type of investment, or in Park First specifically?
Does anyone have any info on this type of investment, or in Park First specifically?
Edited by johnnyBv8 on Thursday 16th April 10:54
It appears to be an unregulated direct investment into parking spaces.
They're projecting 8% plus pa, I'm sure I read the word guaranteed somewhere. A very illiquid holding would be my guess and 8% pa, why are they giving that away? There's no mention of fees that I can see......
So an IFA is recommending this? Unregulated would suggest no cap to commission in my mind, I wonder where his loyalties lie?
Frankly, if this is your friends first step in investment I'd suggest he runs a bloody mile from this.
I have worked as an IFA and now for a Private Bank for over 17 years and the number of times that I've seen the to good to be true unregulated schemes fall on their face ? How long you got?
They're projecting 8% plus pa, I'm sure I read the word guaranteed somewhere. A very illiquid holding would be my guess and 8% pa, why are they giving that away? There's no mention of fees that I can see......
So an IFA is recommending this? Unregulated would suggest no cap to commission in my mind, I wonder where his loyalties lie?
Frankly, if this is your friends first step in investment I'd suggest he runs a bloody mile from this.
I have worked as an IFA and now for a Private Bank for over 17 years and the number of times that I've seen the to good to be true unregulated schemes fall on their face ? How long you got?
Edited by ellroy on Wednesday 15th April 23:24
Just had a look at the site. I'm no IFA but I would definitely run a mile from this. He'd be better off buying a couple of lockup blocks or something.
This looks massively illiquid- I cannot see a private investor being able to resell easily. And the business model is likely to be heavily weighted towards the company.
My gut feeling is that you will get stiffed for spurious maintenance charges and the expected yields won't appear. I can't see any clear exit strategy either.
Just my two' pennorth.
This looks massively illiquid- I cannot see a private investor being able to resell easily. And the business model is likely to be heavily weighted towards the company.
My gut feeling is that you will get stiffed for spurious maintenance charges and the expected yields won't appear. I can't see any clear exit strategy either.
Just my two' pennorth.
Again, like very many of these schemes the first question to ask is this:
Why is an institutional investment opportunity being rolled out to retail mug punters?
The answer is because it is either not quality enough to attract any of the trillions of corporate cash sloshing about desperate to invest in almost anything or because it is a direct scam.
Sub divided land yielding schemes such as car park spaces, building plots, hotel rooms, holiday rentals all have one thing in common. They are unregulated.
It's a really quick way to suck in a few million of mug cash and then flip to the next scheme like bamboo, rare metals or whatever worthless asset can be linked and spun to whatever investment is flavour of the quarter.
Why is an institutional investment opportunity being rolled out to retail mug punters?
The answer is because it is either not quality enough to attract any of the trillions of corporate cash sloshing about desperate to invest in almost anything or because it is a direct scam.
Sub divided land yielding schemes such as car park spaces, building plots, hotel rooms, holiday rentals all have one thing in common. They are unregulated.
It's a really quick way to suck in a few million of mug cash and then flip to the next scheme like bamboo, rare metals or whatever worthless asset can be linked and spun to whatever investment is flavour of the quarter.
Again, like very many of these schemes the first question to ask is this:
Why is an institutional investment opportunity being rolled out to retail mug punters?
The answer is because it is either not quality enough to attract any of the trillions of corporate cash sloshing about desperate to invest in almost anything or because it is a direct scam.
Sub divided land yielding schemes such as car park spaces, building plots, hotel rooms, holiday rentals all have one thing in common. They are unregulated.
It's a really quick way to suck in a few million of mug cash and then flip to the next scheme like bamboo, rare metals or whatever worthless asset can be linked and spun to whatever investment is flavour of the quarter.
Why is an institutional investment opportunity being rolled out to retail mug punters?
The answer is because it is either not quality enough to attract any of the trillions of corporate cash sloshing about desperate to invest in almost anything or because it is a direct scam.
Sub divided land yielding schemes such as car park spaces, building plots, hotel rooms, holiday rentals all have one thing in common. They are unregulated.
It's a really quick way to suck in a few million of mug cash and then flip to the next scheme like bamboo, rare metals or whatever worthless asset can be linked and spun to whatever investment is flavour of the quarter.
Maybe buy a couple of parking spaces somewhere in an area that has a shortage.
I live in a small affluent market town and parking centrally is a nightmare. People pay good money for parking spaces as they want to keep their cars secure/not parked in residents bays.
I pay £150pcm to rent a gated parking space that is below a high end housing development. The spaces change hands at £35k and are rising in value 10-15% p.a
Circa 5%+ a year + an appreciating asset.
I live in a small affluent market town and parking centrally is a nightmare. People pay good money for parking spaces as they want to keep their cars secure/not parked in residents bays.
I pay £150pcm to rent a gated parking space that is below a high end housing development. The spaces change hands at £35k and are rising in value 10-15% p.a
Circa 5%+ a year + an appreciating asset.
I've just received one of these emails!! It's a 6 year lease (where the rent is only guaranteed for 2 years) to an established long stay car parking company adjacent to Glasgow Airport, adjacent occupiers look to be industrial. A quick fag packet calculation suggests the vendor will be getting between £2.5m to £3m per acre for the land and it looks like they've got around 7.5 acres of currently surfaced parking, so clearing between £18.75m and £22.5m, assuming they sell it all. I don't know Glasgow but most of the long stay operators around Manchester airport are located in Sharston or Wythenshawe where the land is worth £250,000 per acre, I can't see land in Paisley being worth much more.
So they'll be selling land possibly worth £2m for around £20m, a nice £18m or 900% profit. Of course they do have a buyback provision, but that does presume they'll still be there in 6 years time - personally I'd be in Barbados enjoying my £18m. Obviously their profit won't be that high when you factor in marketing costs, legal costs, surfaced land being worth a bit more, etc - but it gives a good idea of how much money these guys could be making if they get enough investors.
I've not even considered the rental side - 8% return is around £1,650pa income. I pay less than that for a fully secured 24hr multi-storey NCP space in Manchester City Centre. Car park operators outside Manchester airport are paying around £250-£500 per space per annum. Again assuming the operator is still going in 2 years time I suspect the income will take a significant hit.
With the changes to pensions this year, there's going to be a lot of people having their fingers burned by these schemes - greenfield resi plots, hotel rooms, student rooms, parking spaces, etc. All small lot sizes designed to attract unsophisticated investors in an unregulated industry.
So they'll be selling land possibly worth £2m for around £20m, a nice £18m or 900% profit. Of course they do have a buyback provision, but that does presume they'll still be there in 6 years time - personally I'd be in Barbados enjoying my £18m. Obviously their profit won't be that high when you factor in marketing costs, legal costs, surfaced land being worth a bit more, etc - but it gives a good idea of how much money these guys could be making if they get enough investors.
I've not even considered the rental side - 8% return is around £1,650pa income. I pay less than that for a fully secured 24hr multi-storey NCP space in Manchester City Centre. Car park operators outside Manchester airport are paying around £250-£500 per space per annum. Again assuming the operator is still going in 2 years time I suspect the income will take a significant hit.
With the changes to pensions this year, there's going to be a lot of people having their fingers burned by these schemes - greenfield resi plots, hotel rooms, student rooms, parking spaces, etc. All small lot sizes designed to attract unsophisticated investors in an unregulated industry.
z4RRSchris said:
student rooms via select student property is once such scummy investment.
loads of marketing, call centre full of salesmen and a low enough bite size to make it attractive to the man down the pub
Funnily enough I just came across someone who'd had one of those blow up on them. Another complete scam.loads of marketing, call centre full of salesmen and a low enough bite size to make it attractive to the man down the pub
JQ said:
I've just received one of these emails!! It's a 6 year lease (where the rent is only guaranteed for 2 years) to an established long stay car parking company adjacent to Glasgow Airport, adjacent occupiers look to be industrial. A quick fag packet calculation suggests the vendor will be getting between £2.5m to £3m per acre for the land and it looks like they've got around 7.5 acres of currently surfaced parking, so clearing between £18.75m and £22.5m, assuming they sell it all. I don't know Glasgow but most of the long stay operators around Manchester airport are located in Sharston or Wythenshawe where the land is worth £250,000 per acre, I can't see land in Paisley being worth much more.
So they'll be selling land possibly worth £2m for around £20m, a nice £18m or 900% profit. Of course they do have a buyback provision, but that does presume they'll still be there in 6 years time - personally I'd be in Barbados enjoying my £18m. Obviously their profit won't be that high when you factor in marketing costs, legal costs, surfaced land being worth a bit more, etc - but it gives a good idea of how much money these guys could be making if they get enough investors.
I've not even considered the rental side - 8% return is around £1,650pa income. I pay less than that for a fully secured 24hr multi-storey NCP space in Manchester City Centre. Car park operators outside Manchester airport are paying around £250-£500 per space per annum. Again assuming the operator is still going in 2 years time I suspect the income will take a significant hit.
With the changes to pensions this year, there's going to be a lot of people having their fingers burned by these schemes - greenfield resi plots, hotel rooms, student rooms, parking spaces, etc. All small lot sizes designed to attract unsophisticated investors in an unregulated industry.
I'm based next to Glasgow airport. So they'll be selling land possibly worth £2m for around £20m, a nice £18m or 900% profit. Of course they do have a buyback provision, but that does presume they'll still be there in 6 years time - personally I'd be in Barbados enjoying my £18m. Obviously their profit won't be that high when you factor in marketing costs, legal costs, surfaced land being worth a bit more, etc - but it gives a good idea of how much money these guys could be making if they get enough investors.
I've not even considered the rental side - 8% return is around £1,650pa income. I pay less than that for a fully secured 24hr multi-storey NCP space in Manchester City Centre. Car park operators outside Manchester airport are paying around £250-£500 per space per annum. Again assuming the operator is still going in 2 years time I suspect the income will take a significant hit.
With the changes to pensions this year, there's going to be a lot of people having their fingers burned by these schemes - greenfield resi plots, hotel rooms, student rooms, parking spaces, etc. All small lot sizes designed to attract unsophisticated investors in an unregulated industry.
My wife is a qualified financial adviser.
I'm fully aware of this offering, the land in question, and the people offering it.
Am I investing?
'Kin hell no!
If it sounds too good to be true the sellers telling you you cannot lose and you should buy as much as you can relax in the comfort you've not been taken to the cleaners.
Why not put in a nice loft conversion or a very high quality garden office / outdoor space. Will add value to the house if and when you come to sell but in the mean time you get to enjoy it.
Or a nice kitchen and bathroom.
Why not put in a nice loft conversion or a very high quality garden office / outdoor space. Will add value to the house if and when you come to sell but in the mean time you get to enjoy it.
Or a nice kitchen and bathroom.
Welshbeef said:
If it sounds too good to be true the sellers telling you you cannot lose and you should buy as much as you can relax in the comfort you've not been taken to the cleaners.
Why not put in a nice loft conversion or a very high quality garden office / outdoor space. Will add value to the house if and when you come to sell but in the mean time you get to enjoy it.
Or a nice kitchen and bathroom.
Eh? I'm not sure you're responding the right thread!Why not put in a nice loft conversion or a very high quality garden office / outdoor space. Will add value to the house if and when you come to sell but in the mean time you get to enjoy it.
Or a nice kitchen and bathroom.
Looking at their list of costs tells you all you need to know.
Surprised they are so upfront about such bonkers service/management fees.
http://www.parkfirst.com/price-list/
Surprised they are so upfront about such bonkers service/management fees.
http://www.parkfirst.com/price-list/
carreauchompeur said:
Looking at their list of costs tells you all you need to know.
Surprised they are so upfront about such bonkers service/management fees.
http://www.parkfirst.com/price-list/
Bi-annual break clause - so it's 2 years income then you're on your own.Surprised they are so upfront about such bonkers service/management fees.
http://www.parkfirst.com/price-list/
I guess it depends on your measure of success, but it doesn't appear they've not been very successful in the past for their investors :
http://www.manchestereveningnews.co.uk/business/bu...
http://www.thebusinessdesk.com/northwest/news/1831...
http://www.thisismoney.co.uk/money/experts/article...
it if smeels like a fish and looks like a fish........
that said GLA is experiencing huge growth atm, in fact they just announced a 14% increase in passengers for last month year on year. (Edinburgh was 17% if anyones interested) the problem at Glasgow is unlike EDI there is still a fair number of longstay available over the current carparks on a day by day basis. There doesn't seem to be the unmet demand that these people are claiming.
now if anyone wants to invest in an airport transfer company i'll give you 8% p.a.
that said GLA is experiencing huge growth atm, in fact they just announced a 14% increase in passengers for last month year on year. (Edinburgh was 17% if anyones interested) the problem at Glasgow is unlike EDI there is still a fair number of longstay available over the current carparks on a day by day basis. There doesn't seem to be the unmet demand that these people are claiming.
now if anyone wants to invest in an airport transfer company i'll give you 8% p.a.
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