Buying a garage- what to consider?

Ray_Singh-Blue

Hi, can anyone offer advice please?

I'm considering bidding at auction on a block of garages and some parking spaces in the town where I live. 

I currently have no garage at my house so would use one. The others I would look to rent out.

If my bid was successful at auction, in addition to the purchase price there would be an auctioneer fee of £1000 and legal fees.

I anticipate needing public liability insurance. What other costs would there be, one off or recurring?

Would there be stamp duty? Would there be rates or council tax?

Thanks for any tips

theartfullodger

Maintenance, rebuild costs, admin to chase up late payers etc etc etc.

Last garage I bought cost £200.  How much are you expecting to pay, please

ProDave

More important, is there any prospect of knocking them down and the space occupied by the garages and parking is it large enough to build a house? and likely to get planning permission?

If that is a possibility the price could go a lot higher.

check your local planning portal to see if anyone has tried for PP to do that?

Ray_Singh-Blue

theartfullodger said:

Maintenance, rebuild costs, admin to chase up late payers etc etc etc.

Last garage I bought cost £200.  How much are you expecting to pay, please

Rather a lot more than that!

I reckon having a garage could increase the value of my town centre house by up to 10% so am prepared to pay up to that. 

Ray_Singh-Blue

ProDave said:

 is it large enough to build a house? and likely to get planning permission?

check your local planning portal to see if anyone has tried for PP to do that?

Good point. Doubt it. Very awkward site. I wouldn't be interested in that & would be outbid I guess if that's a possibility. I have a firm maximum bid in mind. What I'm unsure of is if there are hidden costs 

Thrugelmir

Will your car fit in the garage? 

SDLT_Geek

Ray_Singh-Blue said:

Hi, can anyone offer advice please?

I'm considering bidding at auction on a block of garages and some parking spaces in the town where I live. 

I currently have no garage at my house so would use one. The others I would look to rent out.

If my bid was successful at auction, in addition to the purchase price there would be an auctioneer fee of £1000 and legal fees.

Would there be stamp duty? Would there be rates or council tax?

Thanks for any tips

What country are you buying in?  There are different rules for “stamp duty” between England, Wales and Scotland.

Ray_Singh-Blue

England and my car is very small.

user1977

Ray_Singh-Blue said:

I'm considering bidding at auction on a block of garages and some parking spaces in the town where I live. 

I currently have no garage at my house so would use one. The others I would look to rent out.

Is there a market for them? Are they rented out at the moment?

SDLT_Geek

Ray_Singh-Blue said:

England and my car would fit in a cardboard box, it's a Toyota Aygo

So buying in England stamp duty land tax will be due if the payment is above the nil rate threshold.  This is £125,000 for residential property and £150,000 for non-residential property.  I expect that a block of garages and parking spaces sold at auction would count as non-residential.

What kind of price are you looking at, so we can give an estimate of the SDLT.

Ray_Singh-Blue

At the moment the garages look like they have been bombed. The parking spaces have cars in them. Less than £125K. Many thanks