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anonguest

Lock Up Garages - Mad Prices?

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I've posted on this related topic recently......

I've come to recognise that some lock up garages are almost certainly being sold at the prices they are solely because it is assumed that buyers will fancy their chances at getting them converted to residential housing.

Consider this one:

http://www.rightmove.co.uk/property-for-sale/property-39620311.html

On the face of it the price seems insane? Not least because it is, by any measure, NOT in London, no where near fast trains into London, a desirable area, etc.

BUT...a closer look at the details 'suggests' that it could perhaps be favourably looked on to develop and simply join the other existing adjacent/nearby housing????

On the other hand this one......

http://www.rightmove.co.uk/property-for-sale/property-28866993.html

IS in London (and a reasonably expensive and desirable area too) BUT almost certainly offers no such chance of residential development? Note also the price is for just one of those garages in the block. The full block, at the pro rata rate, would equal £200K.

Whilst arguably maybe, just maybe, considered within reasonable distance to the nearest fast trains into London (i.e. it could be used as a bona fide car parking space during weekdays) the price just doesn't make sense relative to long term cost of paying for parking in the area. As for buying it to use purely as a 'lock up' for storage, again that just doesn't add up. £165 per sq.foot!!!!

So who, and why, would pay such a price for a NW London suburban garage??? Again, IF it were Mayfair then I could come round to understanding. But this price for this area? Surely this is an another example of how nuts things are? OR am I missing something?

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Its not cheap in some places to park.

On PERMISSION IMPOSSIBLE last night some lady spend £50,000 on getting permission to build a bloody garage. failed, and in the end gave up and sold up.

Where was this...Kensington? Belgravia?

Nope. Provincial Cheltenham.

These planners need to be destroyed.

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The first, at £90k for what looked like a large concrete area and 8 garages, doesn't seem hugely over priced, although I'm not sure what the rent could be from that area as, as you pointed out, is not near anywhere!

I been looking for a garage myself (as I need one), I current share one with my sister which cost us £60 a month to rent! But have seen rents of up to £90pm around me so would be happy to paid £10k for a single freehold garage. However I not seen any for less than £15k and none which are near enough to me to be useful!

I guess when you look at the yields on garages, they are better than flats and need much less maintenance, so perhaps this is just how much they cost?! I doubt anyone gets a mortgage for a garage! :unsure:

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Value is a function of yield, so what is the going rate to rent a garage in the area? Perhaps an annual yield, multiplied by ten is fair value, if rents are more certain of being paid.

If there is a possibility of a catalyst, such as permission of change in use, you need to weigh up the probability of that happening. If you have an inside contact who knows permission is likely to be granted, you may wish to pay higher, or if not walk away.

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