Investing in Self Storage

Viewing 9 posts - 1 through 9 (of 9 total)

LukeNeale
Member
@lukeneale
Join Date: 2005
Post Count: 28
August 30, 2005 - 2:38 am
Hi to all,
I have found in ideal piece of propeerty in a suitable area and am very interested in building some self storage sheds as a commercial investment. Has anyone had any experienece in this and what should I look out for as possible pitfalls
Thanks
Luke
Mobile Mortgage
Member
@mobile-mortgage
Join Date: 2003
Post Count: 913
August 30, 2005 - 2:58 am
Hi Luke,
This link to The Self Storage Association of Australasia may provide you with some info,
http://www.selfstorage.com.au/industry.php
Cheers.
Regards
Steven
Mortgage Broker
Mobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.au
PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
LukeNeale
Member
@lukeneale
Join Date: 2005
Post Count: 28
August 30, 2005 - 3:05 am
Thanks Steve,
Great help! Didn’t even know there was a Self Storage Association.
Will let you know how I go
Luke
jtw
Member
@jtw
Join Date: 2005
Post Count: 57
August 30, 2005 - 4:46 am
I don’t know much about self storage my self but a good friend owns one and reckons it is the best investment he ever made. Apparently they need to be built from concrete tilt up construction for fire and pest risks. I am amazed there is a self storage association and I’ll be checking it out myself.
jtw
LukeNeale
Member
@lukeneale
Join Date: 2005
Post Count: 28
August 30, 2005 - 5:21 am
Is your friend an independent operator or part of a larger franchise? Where is his business?
jtw
Member
@jtw
Join Date: 2005
Post Count: 57
August 30, 2005 - 6:06 am
Luke,
my friend is an independent. He runs the rental through a normal RE property manager. The facility is up at Redcliffe in QLD. Has a very high rental occupancy.If he needs to fill a space he just runs a 1 liner in the local rag. He had them built and that is why I know about the Tilt up construction part. I believe the big factor is location. Not so much High visibilty location, it is more important it is a growing/changing area. surprising thing is that he only had one speed boat in storage even though he was near the water.
JTW
vernon
Member
@vernon
Join Date: 2005
Post Count: 33
August 30, 2005 - 8:26 am
jtw,
would your friend be able to give some indication as to the price of building such a property? Also what other costs are there, e.g. insurance etc? that one should be aware of?
Thanks
jtw
Member
@jtw
Join Date: 2005
Post Count: 57
August 30, 2005 - 8:54 am
sorry but that is about as much as I know. He has had it about 3-4 years. paid about $400k for 39spaces varying in size, included some crap looking land(125k?). he nets 30-35k after all expenses. He told me his net was about 60% after everything he can legally and questionably claim.
Unit rent varies from area to area so I don’t know how much this will help. He checked out all different ways of doing things and he went independent. He is pretty switched on so I believe he would have nailed it. Joining a national chain means nothing. Its not like McDonalds or anything. People after Secure, Clean, Safe, Value in that order it seems. I know he keeps pushing the idea down my throat, telling me it is good stuff. I guess I lacked motivation until lately. I will be checking things out. If I glean any gems of info I will get back to you, but that is all I can think of for now.
JTW
maurie
Member
@maurie
Join Date: 2004
Post Count: 1
November 6, 2005 - 4:21 am
Hi Luke the company I work for sells steel sheds. I look after the industrial and self-storage department. It would be inappropriate for me to flog my ware on this web site, but if you call me in business hours on 1800 427 185 I will be able to give some info about the buildings.
Maurie