Come across starta title self storage unit gross yield 9% plus GST. Owner pay corp fee, rate & taxes for investment. Unit still under construction but near completion, seller will arrange to secure 5 + 5 years lease with CPI increase yearly. Sound good, but unable to get the net yield figure, seller told me may be 8% . Just wondering it is a good buy or not . Anybody have experience with self storage unit investment can tell sweet & sour , will be most welcome !
HELP NEEDED
Nichelben [blink]as name
hi Nickelben,
Hope you find an answer to this one. The topic comes up a fair bit but it seems to be a type of investment that not many people on the forum are into. I would suggest the returns are a little low. The only person I know doing it is getting about 18% yield but then they have owned it for a long time.
Cheers
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go to http://www.selfstorage.com.au and look at the investment paper link
will give you an idea of some of the issues
Originally posted by nickelben:Come across starta title self storage unit gross yield 9% plus GST. Owner pay corp fee, rate & taxes for investment. Unit still under construction but near completion, seller will arrange to secure 5 + 5 years lease with CPI increase yearly. Sound good, but unable to get the net yield figure, seller told me may be 8% . Just wondering it is a good buy or not . Anybody have experience with self storage unit investment can tell sweet & sour , will be most welcome !
HELP NEEDED
Nichelben [blink]as name
Hi, Nickelben, this may turn out to be a good investment, but at the moment it seems that there are so many “may be’s”, “will do’s”; the seller can promise heaven on earth but there are no figures available that are essential before you buy.
Perhaps not a good idea to sign anything before there are figures and facts on paper and you are happy with the actual net income and conditions.Celivia
Originally posted by crj:go to http://www.selfstorage.com.au and look at the investment paper link
will give you an idea of some of the issues
Thanks CRJ, it is a great website and I got lot of info more than I can think of . Looks risky for me to put in my feet or may be not, but just not the right apple for me.
as name
There seems to be a quite a few proposed self storage developments being proposed in our regional centre. They are reasonably easy for Councils to approve, particularly in industrial zones. This results in quick changes in supply and demand. If there is local demand all of a sudden there will be five proposals submitted to the local Council which when built will create an oversupply and lower the value very quickly. I reckon a bit of a roulette of an investment.
There are a couple of new storage places operating in my local area. However, these are not being offered for sale rather operated at high cash flow businesses to cope with increase local demand.
Cheers
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Property Finders living in NZ .Email now for information sheet and current deals.
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Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
My Dad had a block of self storage units about 10 years ago before they were in vogue. He got a 20%+ yield out of them but the local area is saturated now, and with big money companies moving in the competition is pretty fierce.
I looked at a couple a while back but didn’t go for it. The yield wasn’t high enough, and you couldn’t do anything with them because of the strata title. Better value elsewhere in many cases, unless you can buy a whole block of them, in which case you have control over the land as well as control over the entire management of them.
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