The huge publicity surrounding the high prices of parking bays that have been sold in some parts of prime central London have clearly inspired owners of spaces in other places - now spaces near Gatwick airport are for sale at £25,000 a pop.
Some 500 spaces are being made available through PCG Invest, a Hertfordshire-based firm which specialises in the US buy to let market - chiefly Florida, Detroit and Chicago - and claims to have attracted customers to pay over $8m for US property in 2014.
Now it is offering what it calls “individual car parking spaces” which are available “at London Gatwick Airport.” The first release will see 500 spaces available for sale across two sites described as being “in close proximity to the airport.”
However, there is a catch - PCG says spaces at Gatwick “will only be available to investors who have already purchased spaces at Glasgow International Airport” where a similar scheme has already started.
For those disappointed at having missed the boat - or should that be plane? - PCG says: “There is still an opportunity to purchase a space at Glasgow for those who wish to also invest at London Gatwick too. Spaces at London Gatwick will be available from £25,000, with a minimum spend of £45,000 to include one space at London Gatwick and one space at Glasgow for new customers.”
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Crazy! What kind of a world do we live in where people can afford to pay £25,000 for a parking space at an airport? The mind boggles.
Why can't they just use public transport to get there or get a taxi? Much, much cheaper. You'd have to use Gatwick airport a hell of a lot to make this worthwhile. Or have more money than sense.
If people are willing to pay, Jon, then I think it's inspired. For people who use the airport on a weekly basis - as some no doubt do - it makes financial sense to invest in a one-off payment to secure a parking space. In the long-term - say, 20 years - that would probably work out cheaper than getting a taxi every time, or using public transport, or even using a valet or meet and greet service.
As a long-term investment, £25,000 doesn't sound too steep to me. It sounds like a lot for what is simply a parking space, but if you can afford it and it makes things more convenient for you, why wouldn't you take advantage of that fact?
Sounds like a scam to me - why should you have to buy one in Glasgow to be able to buy one in London - as if you would be able to use both on a regular basis?
Sounds a bit bonkers to me, but each to their own.
If people are stupid enough to pay £25,000 for a parking space, let them get on with it. Unless someone plans to use it on a near daily basis for the next 20 or so years, it makes no financial sense whatsoever. It's a rip-off, a con, but you can bet some foolish people will fall for it.
Exactly, John. It's ludicrous. At a minimum, you're paying out £50,000 for two sodding parking spaces.
Why can't the parking spaces being given to people who actually need them? You know, like the people who actually work at the airport or something. Just a thought.
I can't quite believe that a parking space is worth such a ridiculous amount, but nonetheless I'm sure they'll be snapped up! Don't even get me started on the notion that it has to be a £45,000 minimum spend!
Hmm, I think this goes to show that some people do have more money than sense. And you can't merely buy one at Gatwick, you also have to get one at Glasgow too. Sounds a bit fishy to me.
Hi to all and thanks to Graham for posting this; I just wanted to add a little more detail here to offer some clarity which may help with some of the adverse comments.
These spaces are being sold on behalf of a successful parking company who offer an 8% p.a. fixed NET yield for 2 years and thereafter a projected 8-10% NET p.a. with a 5 year 100% buy back option as the exit strategy.
Currently existing investors in Glasgow are invited to secure spaces in Gatwick when released, or you can choose to own a space in Glasgow to have the invite to own in Gatwick, these are the current buying conditions set out by the developer.
Hopes this helps, please make contact if you would like full details and any more information.
Rather than debating how crazy people became ( by the way crazy people make crazy money in case you didn't know ), the question one should be asking is that is this a genuine opportunity or some pyramid scheme to be exposed in later years, and the answer is simply by doing the maths.
A car slot in Gatwick charges around £20 - £40 per day for parking depending whether it's short or long stay
Assuming ONLY a 100 day a year occupancy that's £2000 - £4000 a year before costs, so you can safely assume it does generate reliable income to pay for its investors.
Put £25k in the bank - earn £500 per year return with luck
Put £25k in a parking - earn £2000 if it were to be genuine as stated.
Leasing rentable land is never crazy when you understand the manipulation of monetary value that goes on in the system.
Play with your money wisely, and trust no one with it - certainly not the bank.
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