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Buy a garage, or rent & how much to pay!

vansboy
vansboy Posts: 6,483 Forumite
First Anniversary First Post
in House buying, renting & selling
Hi All!

Got the chance to buy the garage we currently rent, its in a block, but right next to the house, here in Luton. It's in good condition 40yrs lease left.

Currently £10/week rent, (has been for years) now available for £6000 to buy. No real idea how much a garage is 'worth', obviously it depends on each persons value, but want any thoughts from you please!

Thanks in advance.

VB

Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    Combo Breaker First Post
    If you have the £6,000 in cash and don't need to borrow and have no debts it then yes otherwise I'd just keep paying £10 per week. If you didn't have the money you would have to borrow it and it would cost more than £10/week in repayments.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • serious_saver
    serious_saver Posts: 848 Forumite
    First Anniversary Combo Breaker
    I've done a little research in my local area as my brother is considering buying an off road parking space from a neighbour. He's looking pay about £5,000 but the going rate for a garage seems to be between £8,000 and 12,000 with the most expensive being towards the city centre. That being said, as you get closer to the city centre the houses tend to be smaller old terraces with terrible parking!

    What condition is the garage in? Buying the garage would mean you aren't at risk of an increase in rent but you would become liable for maintainance costs. However you will get a say in what happens to the block.
  • lincroft1710
    lincroft1710 Posts: 17,623 Forumite
    Photogenic Name Dropper First Anniversary First Post
    If you plan on staying in the house for more than 12 yrs it may be worth buying as 12 x 52 x £10 = £6,240.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Name Dropper Photogenic First Anniversary First Post
    It's absolutely worth £6k. I've very very very rarely seen a random garage anywhere for less than £10k - and that one's right next to your house.

    Buy it!
  • mark5
    mark5 Posts: 1,363 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    It sounds like a good price to me and your in a more expensive part of the country.
  • Doozergirl
    Doozergirl Posts: 33,805 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Hello you :)

    Best way to work it is off the acheivable rent if you were to let it out yourself in the future.

    Yield works out at 8.66% at £10 per week. Which isn't bad at all. The condition comes into it, obviously. Would be really nice if it were closer to 10% - £5200 but a potential 8.66% is much better than a smack on the bum!
    Everything that is supposed to be in heaven is already here on earth.
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