Looking for a new way to invest in real estate? There are a lot of ways you can invest in properties. However, you normally need a lot of money and time to plan for your real estate investments, especially if you’re thinking of something like a condo or a small apartment building.
Fortunately, if you only have a relatively small amount of money to work with, you can try to invest in garages. Garage units or car storage units are a great alternative to other kinds of real estate since they’re easier to rent out and require less maintenance.
Some people might think garages are not worth the investment, but in reality, there are plenty of things you can do with a garage. If you want to know more about investing in garages, here are some of the few things that you should know about.
How Much Does It Cost to Buy One?
To find out how much money you’ll need to start investing in garages, you must know more about your desired property’s location. The prices of car storage units for sale in a given area will usually tell you how costly it is to buy your own garage unit.
A garage unit might cost around $4,000 or more, but you can potentially save some of your money by renovating an older unit instead of buying a new and more well-featured unit. Prices for units might go far higher than you’d expect, especially in a place where space is very expensive, like New York or London.
How to Earn Money from Your Garage Units
Much like with any valuable property, you can earn money from your garage unit in a few ways. Here are some of the most common things you can do to make your investment worthwhile.
Rent it Out as Car Storage
Of course, the main and most obvious purpose of a garage unit is to rent it out as car storage. If you live in a very populated city, many people will need additional space to park their vehicles.
You can also do well in terms of profit if you have a garage near a train station or airport, since some people will prefer a more private place to park their car while they go on an important trip.
Investing in a well-featured car garage might cost you more, but you will be able to attract more clients to rent your garage. You can start renting it out based on the prices of similar properties in your city or town.
If your property is in New York or in a similar place, you might earn up to $450 a month from your investment.
Rent it Out as General Storage
If one of your clients wants to store other possessions or items, you can also use your garage as a general storage unit. You can get a decent amount of profit from renting out your garage since some people will still prefer to use your personal services over commercial storage units.
Make Room on Your Other Properties
Apart from renting out your garage for cars and general storage, you can also use it for your other businesses or properties.
If you have a cluttered and unused apartment unit in one of your properties, you can use the garage to store away some items. You can fully utilize the garage to make room for your other business ventures.
If you want to save money on your own personal storage unit, make sure to consider more low-priced units that are outside of town. Garage units can cost a lot more in the city.
Other Things That You Should Know About Investing in Garages
Know if There’s a Market
Learning about your investment’s market is always an absolute necessity, and the same applies to investing in garages. Before you consider investing in garages, it’s a great idea to start reading through your local newspapers or local commercial storage companies.
As we’ve mentioned before, you’ll need to know the prices of local storage units near you so you can list down the ideal prices of your future garage units.
You have to consider the demand for such a service in your area as well. Is there a lack of personal space to park cars or store items in your town? Is there a big opportunity to rent out your garage on a long term basis?
You have to make sure that your investment is going to earn you money in the long run.
Prepare your Finances
Already have a number of desired properties to keep an eye on near the city or town you live in? If the answer is yes, then maybe it’s time to prepare your finances. Prices for garages vary from one place to another, so make sure to expect well-featured garages that can go up to $400,000 each, especially in a place like London.
If you’re looking for a much cheaper option, there are also garage units outside the city that may only cost a few grand. It is possible to get yourself a mortgage for your high-priced garage, but it can be difficult for you to get one even if you have a good credit record.
If you’re only considering low-priced units, you’ll probably be able to get a low-cost loan. However, be sure to double check the numbers first to see if you can turn a profit after all the expenses and interest costs that you’ll incur in renting out your garage.
Advertise your Garage Unit
As a more convenient and faster way of marketing, you can start advertising your garage through car-parking websites. Make sure to also research if you already have local websites.
If you’re in the US, websites like Stache, Neighbor, or even Facebook can help you market your garage for rent. Although some websites require you to pay a small fee, they often give more exposure for your investment. If you’re based in the UK, you can also visit websites like JustPark, Parklet or Gumtree.
Apart from digital advertisement, it’s also a great idea to put some effort into advertising in local papers, and bulletin boards, especially if you think your community is in need of more rental space.