Besides buying an apartment, many people wonder if it is worth it investing in a parking space in Spain? Some people decide to do so in order to make some money. If you are contemplating investing in a parking space, read the following article and make it a little easier for yourself to come to an objective decision.
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Why invest in a parking space?
There are many reasons that can make you want to invest in a parking space, but maybe the most important reason is its profitability. It is estimated that your return on investment of a parking space is around 2% per year. Of course this percentage can even be above 6% in some of the larger cities where demand is higher. Investing in a parking space in Barcelona is much more profitable than doing the same in a smaller city.
Compared to the revenue you will earn with other financial products, is becomes clear quickly that investing in a parking space is a good thing. Another aspect worth mentioning, is the fact that any type of property only becomes more valuable over time. So buying a parking space is therefore a long-term investment.
What to take into account when investing in a parking space in Barcelona?
You have just realised that investing in a parking space in Barcelona, or any other big city, is definitely worth it. But there are some other key elements that must be considered before buying this type of property. Some of these elements to take into account are:
If you want to buy a parking space, then you don’t need as much money as investing in an apartment for example. Sometimes you will be able to find a parking space for around 15,000 euros. Of course it all depends on the part of the city you will find this parking space in. A real estate professional can help you find a parking space in Barcelona to make sure you will earn some good money.
Types of maintenance
Generally speaking a parking space doesn’t require much maintenance. What this means, is that municipal costs are quite low. Prices range between 50 and 60 euros every quarter, depending on the area your parking space is obviously located in and a parkings space’s other specific factors.
Buying a parking space to put it up for rent at a later stage doesn’t mean you are bound by the Ley the Arrendamientos Urbanos (LAU or housing laws). Clauses are overall much more flexible which allow for more freedom. Even if this is the case, you should always ask a real estate professional in Barcelona for help when you’re investing in the city. Their services will make sure your money will go to buying a property that is worth it.
Those who have investd in a parking space with the objective to rent it out, know already that this type of property is in high demand. With more and more people owning their own car, they also want to be able to have their own parking space. And that is what makes your purchased parking space a good investment.
How much IBI will you pay for your parking space?
To learn how much IBI you will be paying, you have to be aware of four elements, like the size of the parking space, the location it is in, and the type of parking facility.
The average price is around 150 euros every year. It would be ideal to take all the previous information and make a calculation in order to know all the costs upfront. If you want the IBI to be paid by the tenant, then you must add this amount to the rent you are asking. Someone who rents a parking space can declare this tax when doing their yearly income taxes.
The Impuesto sobre Bienes Inmuebles (IBI or property tax) is paid once per year, but according to the autonomous region you are living in, you might be able to pay per month.
Related article: Renting an Apartment with Parking in Barcelona
Other expenses to consider when owning a parking space
Besides the IBI, and as with any other type of property, you are responsible for paying certain costs that you want to know of before deciding for how much your parking space will go. Some of these monthly expenses are:
- general maintenance costs
- parking place insurance
- water and electricity
- community fees of the property a parking space is in
If you have done the math after reading this article, you will quickly realise that investing in a parking space will be a guaranteed return on investment. It requires less cash and it will be a piece of cake to find a tenant for your parking space.
Find your parking space in Barcelona with the assistance of ShBarcelona’s real estate professionals.