Leasing out Sea Containers for storage

Discussion in 'Innovative Techniques' started by Vassago, 22nd Oct, 2015.

Join Australia's most dynamic and respected property investment community
  1. Vassago

    Vassago Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    96
    Location:
    Perth
    I have a residential property that I am looking at chucking some sea containers on and leasing out separately for storage.

    The containers will be hidden behind colourbond fencing and behind a colourbond gate. Has direct street access and there is plenty of parking on the street.

    Will get a simple commercial lease drawn up to make it all legit.

    Sea container cost $3.2k each(for nice ones delivered)
    Lease @ say $175pm = $2,100pa
    65% return on investment

    The same size storage unit in a proper facility near by is $242pm.

    Any thoughts?
     
    Vassago, 22nd Oct, 2015
    #1
  2. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,759
    Location:
    Perth, WA
    How will access be done?
     
    thatbum, 22nd Oct, 2015
    #2
  3. Vassago

    Vassago Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    96
    Location:
    Perth
    There will be a separate gate for each sea container, they will be given the key to the gate and the sea container.

    The only thing behind the gate is the sea container and access is direct from the street.

    Otherwise could lease the areas for storage of boats & caravans etc but I don't think there will be as much demand or as much money in it.
     
    Vassago, 22nd Oct, 2015
    #3
  4. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    10,750
    Location:
    Sydney or NSW or Australia
    Development approval?
    Permissibility under zoning?
     
    Scott No Mates, 22nd Oct, 2015
    #4
  5. jim1964

    jim1964 1972 Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,166
    Location:
    Adelaide S.A.
    I used to own a Storage & Removal business,using on site containers.I had 50 20 footers with almost 100% occupancy,five years ago they were $200PM.This was in house though, not general public.At the time i saw a need for boats &caravan storage as people just don't have the room, problem i had was no room for them,only containers.
     
    jim1964, 22nd Oct, 2015
    #5
  6. Vassago

    Vassago Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    96
    Location:
    Perth
    Wasn't going to worry about any approvals etc. They will be hidden from sight and worse case scenario can easily be removed. The land is zoned mixed use so it may not be an issue.

    Yes doing a bit more research the going rate appears to be $200 - $220pm. The areas I have earmarked are only 6.7m by 3m, perfect size for a 20ft containers but will only be good for small caravans/campervans & boats.
     
    Last edited: 22nd Oct, 2015
    Vassago, 22nd Oct, 2015
    #6
  7. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    10,750
    Location:
    Sydney or NSW or Australia
    Zoning may be compatible so getting a da will mean that council can't terminate your leases as they will comply with the cons
     
    Scott No Mates, 22nd Oct, 2015
    #7
  8. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,562
    Location:
    Sydney
    DA needed. Neighbours will complain and council will take action for breaches of DA / Zoning.

    Why not just use cheap rural land as a illegal tyre depot. Charge tyre fitters $2 a tyre and put a million on the lot. Just as (iI)legal but higher profit.
     
    [email protected], 23rd Oct, 2015
    #8
    5080, Tim86 and Westminster like this.
  9. Tim86

    Tim86 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,510
    Location:
    Brisbane
    What sort of zoning would you need for a storage facility?

    Would an industrial site work?
     
    Tim86, 23rd Oct, 2015
    #9
  10. Aaron Sice

    Aaron Sice Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,155
    Location:
    Ocean Reef, WA
    hardstands are cheap enough to rent - you would be AMAZED at how far people travel for storage.

    look in those towns on the skirts of the metro area.
     
    Aaron Sice, 28th Oct, 2015
    #10
  11. sanj

    sanj Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,820
    Location:
    Perth
    Dont know about market sentiment currently but a year or so ago hardstand was in high demand in perth for well located ones. We had 6x 20' portable bars to store and i was surprised by the numbrt of people who said they didnt have the space or had enough demand to ask silly prices
     
    sanj, 28th Oct, 2015
    #11
  12. Aaron Sice

    Aaron Sice Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,155
    Location:
    Ocean Reef, WA
    It's something I have been watching closely.

    are you talking about hard stands (ie truck parking) or larger storage in general?
     
    Aaron Sice, 28th Oct, 2015
    #12