MY INVESTMENT Author: ALYSSA FRENCH Date: 24/07/2005 Publication: The Sunday Age Section: Domain Page: 6
Francis Armstrong is driving his dollars further by trading in car-parking spaces.
MELBOURNE businessman Francis Armstrong has reached a property milestone. He has graduated from the renting and leasing market to become a buyer and seller of property - car-parking property.
The owner and founder of findacarpark.com last week started selling car spaces in addition to his established parking rental business, which links commuters with people prepared to lease parking spaces.
He has become an authority on off-street parking. And with his first space in Port Melbourne expected to sell for $35,000, real estate agents and car park investors have been listening and taking notes.
Four months on from the launch of his parking scheme, Mr Armstrong has learnt the value of a couple of square metres.
"Off-street parking can add more than $30,000 in value to a house," he says.
"It's one of the most important criteria for prospective property investors and home owners."
The entrepreneur has not always played the investment property game by the rules.
In January 2001, Mr Armstrong bought an off-the-plan apartment in Grollo's Eureka Tower for $410,000.
"I wouldn't do it again," he says. "When the apartment market started looking dubious, I considered my chance of getting my money back as one in 100."
But it did sell - three weeks ago - and for $460,000, a 14 per cent return.
Mr Armstrong readily admits he was lucky. "I capitalised on the lifestyle choices of many in the property market," he says. "People are more likely to spend money on a place where they want to live."
And luckily for Mr Armstrong, he says Eureka Towers has a higher number of owner-occupiers than any other residential apartment building in Melbourne or Sydney.
And the car park? That was thrown into the deal. Even though various independent offers of an undercover car space were made for his Rolls-Royce, Mr Armstrong says the car park added more value to the sale of his apartment than its separate worth.
His next project saw Mr Armstrong invest in the history of his local area, Prahran. A Salvation Army hall, off Chapel Street, whetted his appetite in August 2001.
"I was looking to invest in property but I never expected to purchase a warehouse with cultural and historical value," he said. And he managed to buy it for $470,000.
Despite opposition from the local council on aspects of its heritage and street parking, a permit for three townhouses that retain the original facade was approved. The property - with Mr Armstrong's touch of three stacked car parks for the space-challenged townhouses - will be auctioned on September 3. He expects it to sell for $750,000.
Although upset that he is unable to see the project through to completion, Mr Armstrong's creative talents are employed renovating his family home in Malvern Road, Prahran. And with twins on the way, the family made a lifestyle choice with Malvern Road - the house is close to schools and public transport, and has two off-street car parks.
Despite being unafraid to take a risk, he urges young investors to start modestly and not overcommit.
"Relying on the property boom is fraught with danger," he says. "Young people need to save a reasonable deposit to act as a buffer against shifting interest rates."