Storage Unit Sydney

Discussion in 'What to buy' started by Hedgy, 27th Jun, 2020.

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  1. Hedgy

    Hedgy Well-Known Member

    Joined:
    6th May, 2016
    Posts:
    152
    Location:
    Sydney
    Hi all,
    I've had a few residential investment properties in my time and pretty comfortable with the ins and outs of investing in them. However, I've been presented with an opportunity to purchase a storage unit in the Sydney metro area. I know absolutely nothing about investing in storage units and curious to here from people who have invested in this space: is it good, is it bad, what is a typical yield, what's capital growth like, what are the traps for inexperienced investors in this space.

    A little about the opportunity: it is in a dedicated secure storage facility that has around 50 storage units. It has 24/7 access and security. It is within the Sydney metro area. It is currently on a long term lease returning an annual yield of 5.7% of asking price. Owner is negotiable and I'm think of making an offer that would put the yield at around 6.5% to 7.1%. Body corporate fees including council rates are currently around 12.7% of the weekly rent.

    Grateful for any insight offered.

    Cheers all,
    Hedgy.
     
    burleighminstores likes this.