A number of property investors asked me if there’s a need to purchase parking lots in developments in or near to the CBD. My answer is a straightforward ‘YES’. My business partner told me he hasn’t known any Australians without a car. In fact, ALL the Singaporean friends who have migrated over to Melbourne or are currently working there on a long-term basis own a car. The reason is pretty simple. Australians have a certain lifestyle to upkeep and geographically it’s impossible to travel around the state in public transport within a short period of time.

What if someone lives and work in the CBD? Does he need a car?
YES!!

What’s he going to do over the weekend? Only 5% of the population works in the CBD. It’s not a huge proportion compared to those working in the suburbs. Most Australians work outside the CBD. The tenant wants to have the luxury of moving around over the weekend. If you have bought an apartment along Chapel Street, or St. Kilda road without a car space, your tenant base will be significantly smaller. Having been in this business for the last 5 years, I have learnt that as property investors, the two most important group of customers you have to aim to satisfy are the banks(1st) and your tenants(2nd). If you choose to ignore what your tenants really want, you will be in for a surprise - not a pleasant one I can guarantee.

Good luck folks!