Reply With QuoteWe got close to buying a block of three but the seller pulled out, it's really just like buying a house, go chat with a solicitor.
I currently rent a garage in a convenient location. The owner of them has put the block (of 5) up for sale at what I consider a fair price and I am considering buying them with the idea to either just keep them all for myself and evict the two other folks in them or continue to let them as a small investment / source of income.
I am pretty inexperienced here... am a first time home owner and currently don’t have to get involved with self assessment for tax as I am paid through PAYE ... but similarly I really don’t want to lose that garage and indeed could do with another so I think it might work out for me longer term.
I know I would need a solicitors to handle conveyencing much like when I bought my house.. just wonder if there are any other potential minefields I need to be considering before I make enquiries about a possible purchase.
I figure at the end of the day it’s just five basic brick structures... I mean, how much can realistically go wrong? Or am I grossly misunderstanding the potential headaches?
Thanks.
We got close to buying a block of three but the seller pulled out, it's really just like buying a house, go chat with a solicitor.
"Once is happenstance. Twice is coincidence. The third time it's enemy action."
'Populism, the last refuge of a Tory scoundrel'.
PM on its way
Thanks - much appreciated :)
They can be a very good investment but much like other property, location is key.
I work for the single largest lock up garage owner in country (14k). I also at one point owned and rented about 10 LUGs as we call them in the trade (lock up garage). Down to about 5 now due to other investments. Fantastic yields achievable. No boilers to go wrong etc etc. As you say, basic structures. I personally will only buy brick built lugs, no concrete pre fabs for me as they leak too much, tend to go wrong structurally and generally aren’t a patch on a good brick built equivalent. Location vs price is your main concern. South east London a good lug is easily £15k upwards nowadays whereas you can pick them up from £8k upwards in more rural, less congested areas where demand isn’t as high as city’s. Some examples of my own purchases...
Double garage bought in Bognor Regis on a gated site with electric and water, paid £25k, spent £5k on new roof, new door and tidying up the site. Sold for £50k within 3 months of completion. Have a double garage in an affluent part of town with electric supply bought at £20k and currently let out for £250pcm which is £3k per year,15% yield. The good thing about them is that they are very liquid so if you need a spare £10k/£15k, you can sell one from your block as it’s extremely simple. You don’t have to sell the whole block. Capital gains if I remember is about 18% which is the only tax I believe you pay if you sell at a profit. I tend to buy/sell/rent as a hobby that pays dividends. I tend to stick a new roof and new door on mine which is around £1200 supply and fit which then gives me 5/10 years hassle free. I’d say if the price is right, go for it and you won’t regret it!
Great information - thank you :)
Out of interest, fo these tend to be freehold or leasehold?
Either or. Preferably freehold but leaseholds ok but bear in mind you’ll normally have insurance contribution and ground rent to pay. Freehold is the best.Originally Posted by hogthrob
Yeti I have a site with planning for 5 , I would have to do the build .
I am concerned about the security aspect who would be responsible for break ins and repairs ?
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If you own and let the garages then unfortunately you will be responsible for repairs and any damage caused by break ins. If you have them built to a good standard ie brick built with a decent metal up and over door, you shouldn’t have any issues unless someone does break in. In all honesty, I look after 50 sites across south London with 1-40 garages on each site and in over two years I think I’ve had maybe 3/4 break ins. I don’t know where your site is but even our sites in the deepest, darkest part of towns rarely cause us any issues. Believe it or not, the more security you put on the doors the more you make a target for yourselve. I can go on a site and out of ten doors if I was a thief I’d target the one with the bolts top and bottom, hasp and staple, garage defender etc etc. (What are you trying to protect with all that security?) I personally like to fit Enfield garage door bolts which are concealed bolts that bolt into the frame of the garage either side and maybe one heavy duty hasp and staple with a decent padlock. Get them built and if you don’t want the hassle of letting them, give me a call!
Cheers will do .
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Yeti how on earth can you get a roof and door for £1200 ?
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http://www.thegaragedoorking.co.uk/a...al_Offer_.html
Above link is for the most commonly used decent door manufacturer in the uk...prices from £365.
Metal box profile Roof supplied and fitted for circa £750 with anti condensation felt fitted to the underside.
http://www.garageroofs.co.uk
@yeti
you say they are easy to sell (and therefore easy to buy?)
So where can you do that?
A few on Rightmove in my area. I’m confused though as one is 10k, a couple going for auction with a guide price of £500 but an auction fee of 1.5k!
Rightmove
Onthemarket
Property Auctions
Gumtree
Location will play a big part. City centre, no parking=demand. Big block of run down garages on a council estate in dodgy part of town=no good.
As they say, location location location
Thanks again .
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