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IStock / City Presse

Stone has always been an investment of choice for building up long-term wealth.

That said, buying a home to rent it out and earn income is not without its risks.

Rather than stone, investors can then turn to concrete, and more specifically to the acquisition of a parking space.

A growth market

If the ecological breath encourages us more and more to abandon our cars, their outright abandonment is not for tomorrow.

Urban sprawl and the lack of alternative public transport still force many individuals to travel kilometers with their vehicle, before having to pay often prohibitive parking meter tickets to park not far from their work.

This windfall of motorists is an opportunity for investors.

Less expensive, less restrictive and more profitable than a home, the parking space has something to appeal to savers in search of profitability.

On the price side, the acquisition ticket amounts to 25,000 euros on average, according to a 2019 survey by SeLoger.com.

But the bill can vary by several thousand euros depending on the location.

While parking costs barely 10,000 euros in Saint-Étienne, it unsurprisingly explodes the counter with 34,600 euros in Paris.

The purchase of a parking lot intended for rental can be an advantageous investment, provided you choose it well.

- IStock / City Presse

Rental freedom

Once in your possession, this property will cost you next to nothing, since maintenance and renovation costs are negligible.

As for its rental, it is done with ease.

When parking is not attached to housing, it escapes the rules of the residential lease to be subject only to the Civil Code.

Therefore, this type of contract does not imply a ceiling on the rent or a three-month notice of departure (one month is sufficient).

Likewise, it suffices to wait for the deadline to give free leave, without any justification.

The only requirement is to draw up a written contract which will summarize the rental conditions.

This transaction can allow you to pocket some 91 euros in monthly rent, according to the 2019 SeLoger.com survey, for an annual return ranging between 4 and 8% depending on the municipality.

By declaring this income under the micro-land regime (less than 15,000 euros per year), you will benefit from a tax deduction of 30%.

And at the time of resale, you will be exempt from tax on real estate capital gains if the price is less than 15,000 euros.

Golden rules

Like any investment, however, buying a parking space should not be done lightly.

In this regard, it is first and foremost the location that counts.

Favor tense areas, such as the city centers of large agglomerations, in which parking is a real headache.

But beware, from one district to another, the situation can be very different, depending on the density of dwellings and the existing free or paid parking lots.

This is why it is interesting to ensure that no parking project is planned in the sector before embarking on this path.

The characteristics of the location are also important.

Although it is more expensive to buy, the box is more sought after than the simple place, for its security and its storage space.

The first and second basements monitored by cameras are the most coveted by users.

Finally, pay attention to the dimensions of the garage (ideally 2.50 mx 5 m), because it must be able to accommodate the largest vehicles.

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Beware of scams

In June 2020, the Autorité des marchés financiers (AMF), the policeman of the sector, warned individuals against scams linked to the purchase of parking spaces.

Many savers have in fact been contacted by so-called professionals extolling the merits of this type of acquisition, especially when the car parks are located in European airports.

Returned to an online platform, the victims then sign a false contract and transfer the funds with no hope of recovering them.

To avoid these scams, beware of solicitations by phone or email, as well as dubious advertisements that abound on the Web.

Instead, prefer a classic purchase, going through a real estate agency or classified ads sites.

  • Car park

  • Investment

  • Car

  • Rental