Investment is a common tool for many of us to beat inflation. There are many types of investment available to us nowadays.
The traditional way of investing is to buy properties or stocks.

An increasing trend of alternate investments such as fine wine, fine arts, agricultural (Hydropnics), land banking and carpark.
Investors purchase a block of property in a car park – called “car park spaces.”
The investor then leases the space out to a tenant for a specified period of time. The tenant could be a property management company.
The property management company turns around and sub-leases the car parking space to customers on an annual basis.
The minimum capital outlay for a carpark investment is generally USD35,000 for a 6-year lease. Investors can expect a return that ranges from 8% to 10%.
Mind you, such investments are unregulated, meaning Financial authority will not involve in resolving any dispute between two parties .

Risks involved
Carpark spaces seem to be an asset class as it is considered a property and deem a low risk type of investment. However, all investments carry a certain degree of risks.

Currency risk
Opeator risk – Investors need to consider the company’s experience and whether the operator or not the operator Providing assurance that the operator will not participate in questionable activities – such as clamping and towing away on private land where there is no lawful authority to do so.

Economic risk
Regulation risk Imposition of congestion charging in large inner city areas and initiatives to reduce parking demand by local authorities such as park and ride schemes also have the potential to shift carpark demand from certain areas.
There is no guarantee in the investment yield as any return will be dependent on parking.

Investment yield
Any drops in demand for parking are also likely to have the undesired effect of reduction in occupancy and thereby a decrease in the yield from the investment

Exite exit in retail parking space investments is generally for the investor to sell their asset on the open market. Hover, property assets are often illiquid in that it is unlikely that a parking space could be instantly sold to generate Investors can make use of websites to assist them with the buying and selling of retail car park spaces and some commercial real estate agents deal in the sale of car parks. exit in retail parking space investments is generally for the investor to sell their asset on the open market. However, Investors can make use of websites to assist them with the buying and selling of retail car park spaces and some commercial real estate agents deal in the sale of car parks.

Suresh Shah, Pathfinders Enterprise
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Adapted from an excellent write by Stepen Leong