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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 11121
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Are airport parking investments a sound investment practice?

Customer Question

Are airport parking investments a sound investment practice? The returns quoted are generous and beyond many others on the market therefore, I'm a little sceptical on committing fully. Any help advise would be appreciated Thankyou. The company offering the service is Direct Airport Parking Investment Ltd

Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.
Hi,...Yes, investments in (through) established companies such as this are generally one way, today, to generate returns that are TYPICALLY in the range of LONG-TERM equity market returns (10% on the up side) without as much volatility....A claim that they are WELL above many others on the market may be an overstatement, however....A recent announcement relative to the Glasgow airport serves to illustrate:..."Glasgow airport parking investments from commercial property company Park First have exceeded expectations by paying out returns of over 10% to investors..."...And as with ANY investment you should do your due-diligence (looking at track record, record of meeting expectations, etc) AND THEN look to see why the venture you are considering with them may be different....IN terms of their expertise and credentials .....
Expert:  Lane replied 1 year ago.
Their investment consultants are FAIRLY well educated ... would likes to have seen at least ONE CFA. But the experience there is deep and diverse ...On the down side, I see more experience in sales than analysis.... I would ask questions of them based on the supply and demand for their NEXT venture and for what their ongoing operations will do, if your investment is not project specific
Expert:  Lane replied 1 year ago.
TO answer your question SPECIFICALLY, I would say that the general statement that "airport parking investments [are] a sound investment practice" is not a safe statement....Investing in a parking establishment in Detroit, for example, especially over the LAST several years, given the general economic woes of the area, business travel there, etc., is (all other things being equal) not necessarily a "sound" investment ... ALTHOUGH now might BE the time as we may be coming back out off a bottom there....You may have heard the term (typically associated with real estate) that the most important three things in real-estate investing are location, location, and location.....I would submit that this statement applies here.
Expert:  Lane replied 1 year ago.
I think it's interesting that one of their highly touted successes relates to Glasgow ... Glasgow Airport One Of Europe’s Fastest Growing Airports ......What you'll want to dig out is whether they went thrre AHEAD of that phenomenon or not AND whether or not it was coinciidental...Does this help?
Expert:  Lane replied 1 year ago.
Have you seen this?:...http://www.express.co.uk/finance/personalfinance/551203/Pensioners-invest-in-airport-parking-for-retirement-income
Expert:  Lane replied 1 year ago.
I think that the real question here is "will the growth continue?"...And if not, will the operations be run efficiently and effectively?...One further question that this begs is, can I get my investment back easily? (How "liquid" is my investment)...We are not registered investment advisers as a site here, so I cannot provide specific advice (buy this investment, don't buy that investment)....Hopefully, however, this has provided the kind of information, the way to think about this, so as to help you make an informed decision....The company you're considering certainly IS having success today ... But if you are doing this as a long-term investment, I would certainly ask questions, do research around, continued success and plans for the future....Please let me know if you have more questions or if you'd like me to do more specific research...Hope this has helped...Lane...If this HAS helped, and you don’t have additional questions on this, your positive rating … (by clicking or touching the stars or smileys on your screen) … would be appreciated! … That’s the only way I'll be credited a portion of what you've paid JustAnswer..