Hey Guys Just after some info/advise/feedback etc I had a ad pop up for investing in storage units. It sounded interesting and looks a safer option if I was to expand out to commercial property. Thought this might be a good investment if I was to set up a SMSF. I'm not a business owner or self employed so just wondering if it's still a worthy investment to look into. I have a few inv properties but never considered commercial until the add popped up. Thanks for your time. Regards
I saw a billboard, on the Hume Highway near Chullora, which advertised brand new storage units from $88K. They were about 20sq metres in size and high enough for 2 levels I have no idea what the outgoings would be. I imagine they have toilet facilities so I was thinking they could be used as cheap accomodation. I'm saying that because I have used many 24 hour storage units and usually paid about $400 pm. One place I rented in St Marys had a hillbilly family living in one of the units. They had a pet dog and were smoking, which is not allowed. The roller door of the unit was up and junk was strewn everywhere lol. The manager of the place said he engaged a solicitor months ago to try and kick them out but it's not easy. I think if they were discreet, someone could live in a storage unit and easily pay $150 pw. Alternately, they could be rented out as a storage facility.
Wow, this might be the next big thing, and since it's not policed by strata laws, you wouldn't even have to worry about nuisance complaints in NCAT about smoking. Or pets. If only this would have been thought of when Masters went bust, and you could've filled all their their huge carparks with 40ft "storage" containers...
No don't think so. I'll do some research and find them. Pretty sure they were located on corner Muir Rd and Hume hwy
I could have saved Woolies a lot of dough if only they read PC and consulted me (small fee plus % of profit). I could have made Woolies great again!
Research says it's big in America. Good yields low over heads and low vacancy rates. Someone always needs storage. Business owners and self employed can buy a storage unit and rent it to themselves and basically pays there super. Instead of paying a private landlord. My research says to buy multiple units so if one is vacant your still receiving cashflow. I was just seeing if anybody does this. Would this be a good option for a SMSF or an investment into commercial.
Investments are generally based on : Yield, growth, cashflow and their liquidity if a stable reliable market is needed to quit the investment. A hillbilly garage or temporary methlab probably has none of this. Owning a entitlement for use of a property is very different to owning a storage centre. If the operator goes bust what do you have ? Maybe no access and are just a unsecured creditor with a vague lease you cant enforce. And a high risk of loss caused by others eg fire. theft etc I have watched those storage hunter TV shows and bolt cutters or a rechargeable grinder has it open in seconds.
A previous tenant created about 40 of these units within a warehouse. I found it too much administration to manage them. Removed the lot (Change of direction for my portfolio with a move to less tenants , less payments (annual), larger tenancies and longer leases resulting in less admin work.)
I owned a storage complex once.A great cash cow.One of my regrets i didnt follow on with expansions a decade ago.
One thing I do know is there is very strong demand for storage where I live here is Western Victoria. An agent friend of mine gets calls every week from people wanting somewhere to put their stuff.
Thanks for the offer Mome. I have used storage units for a good 10 years and I did a lot of talking with the managers. The feed back I got is that they are a cash cow. One manager I spoke to reckons the storage side of the business is far more lucrative than than the other side which is involved in the hire of tools, machinery etc AND far less paper work. I have done away with the main stream storage unit companies and now just rent privately a 2.7m x 6m lock up garage in a home unit complex. Much much cheaper. Ony issue is some dhead occasionally parks in front of the door.
Positive. The owner doesn't drive. It belongs to a resident in the complex who is too lazy to use their garage or park in the street (where their car becomes fair game for datto's fob relay attack device aka dafrad, trade mark pending).
I know a lot of people do really great out of them definitely due to the return on m2. I just bought a small commercial unit OTP on central coast which you could use for storage but it is sold as a full com unit so many more options than just storage. Many people are selling them as small m2 these days so it opens the door for more people-a great idea I reckon .
