As any successful investor will tell you, sometimes you have to think outside the box in order to get the best return on investment. One such opportunity that is currently attracting the attention of investors across the country is, wait for it, airport parking. Yes, that’s right, parking spaces in some of the country’s largest airports are now up for grabs, and they look certain to become another part of many an investment portfolio as their popularity rises.
So, what is the big attraction in putting your money into what is essentially a strip of tarmac? Here we take a look at five reasons why airport parking is certainly worth more than just a cursory glance next time you are thinking of diversifying your investment portfolio:
1. Low entry cost
One of the most appealing aspects of this type of investment is its low entry cost. When compared to many of the other opportunities currently available to those who are looking to find another way to put their money to work, airport parking performs favourably. With prices starting from just £20,000 airport parking offers even the smallest investor a viable opportunity for significant gains.
2. Guaranteed yield for the first two years
Unlike many other investment opportunities where you roll the dice and see where they land, investing in airport parking is a sure thing – for the first two years at least, after which yields are projected to grow. A yield promising 8% net is not to be sniffed at and many investors are taking advantage of what can only be described as a safe investment.
3. Extremely high demand
If you are worried about the potential performance of your investment past the two-year mark, you needn’t be. Demand for parking spaces in all of the UK’s major airports is very high indeed and the projections for air travel going forward look extremely positive too.
According to the International Air Transport Association, global air travel looks set to double over the next 20 years and the UK is expected to have over 150 million more Origin-Destination (O-D) passengers by 2034.
4. Lower volatility
Investments such as this offer those who wish to put their money in a more secure and stable opportunity the chance to do, bringing some balance to what may otherwise be a risk-heavy portfolio. By diversifying your options, you are effectively spreading the risk should anything happen in the other markets that hold your cash. This is a prudent measure, especially with the increased volatility we have been witnessing across the world’s stock markets of late.
5. Relative passivity
Another thing that will be extremely attractive to many investors is the fact that investing in airport parking is a relatively hands-off investment. This hassle-free opportunity will suit those who simply want their money to work for them without the aggravation of wheeling and dealing in markets they may be unsure about.
And as an added bonus, airport parking is relatively free of possible tenant damage. When it comes to housing, any tenant can accidentally set fire to the property, cause water damage, have parties that can really sky rocket wear and tear costs, etc. Whereas in airport parking it’s almost impossible for any of that to happen. So you can rest easy at night knowing that your investment will sit safely.
There you have it, five good reasons why airport parking has a future as a solid investment opportunity across the United Kingdom. Do you think it’ll take off?