Self-storage rentals

[ren-A]

Hi all,

This forum has been invaluable to me and I've particularly enjoyed the wins and losses in the Property Management section.

I was wondering if anyone has looked into yields from self-storage?

Kennards seems to offer investment opportunities here: http://www.kss.com.au/new/

under "Corporate Information" / "Own, Manage and Joint Venture"

Seems to me mini storage units would be easier to build and maintain than residential IPs.

Thoughts, anyone?

(PS - have done a search and found the few threads previous. Am more interested in personal experiences)

[Peter 14.7]

Not a personal experience but I avoid any investment where I do not have control of the pricing, management fee/system and costs.

Essentially you are usually giving the operator (Kennards in this case) an unsecured loan at 2-5% retrun and then paying them a fee for the right to the earn that 2-5%.

Similar to serviced apartment deal, timeshare, and car parks, to me they are too risky as control is everything.

Peter 147

[XBenX]

Thommo did some research on them from memory, was that in previous theads you searched? If not, maybe shoot off a PM

[landlubber]

Ren,
Investments like storage units, car park spaces, serviced apartments etc are only as secure as the company that manages/operates them. You have virtually no control and if the operator goes "bad" you can have no income and no power and no alternative.

Not a good situation . Avoid.

LL

[Thommo]

Thommo did some research on them from memory, was that in previous theads you searched? If not, maybe shoot off a PM
I was researching stand-alone, freehold property.

The one I want has virtually 100% land value and a 9% gross return. The down sides are that you pay an extra 1% interest and can only get 70% LVR.

Another possible problem is that they are springing up like mushrooms but so too are inner-city units.:)

Like the others, I don't like the big managed complexes.

Thommo