Strata Storage Units?

[myla]

hello,

looking for any opinions on strata storage units

in Melbourne you get plenty of developers building them and offering for sale

curious about the re-sale market, dont seem to see many advertised

thankyou

myla

[Celeste]

Hi all

Do not know about melb, but I would like to buy one in Perth - but your right I cannot seem to find where they are advertised. So I am renting one

Celeste

[Mary]

in Melbourne you get plenty of developers building them and offering for sale

where are you seeing these advertised myla? In the papers or online or elsewhere? I'm curious as a friend of mine wishes to purchase one instead of paying 4 years of storage fees whilst working o'seas.

[myla]

hello,

seen in local Leader papers and online, generally featured on a financial website i.e. moneymanager

I am in St Kilda, and this one was in our local paper:

http://www.uownstorage.com.au/

there is another one in Melbourne but just cant remember name at the moment, they had a lot in CBD

cant find anything on re-sale market

thankyou
myla

[A Jackson]

CBD Melbourne
http://www.beluga.com.au/

Not a recommendation, just heard the ad on the radio

[Ruby]

The self storage association has a lot of information available on their site to give you more of an insight into the storage industry. http://www.selfstorage.com.au/index.php

They also have a detailed report on investing in storage units that is well worth reading. http://www.selfstorage.com.au/pdf/investment.pdf keeping in mind they have a vested interest in them. ;)

[JustaDreamer]

Celeste there are some for sale in Albany W.A seen them in saturdays paper for last few months 1,695,000 for 43 of them.

Mat

[pursefattener]

I read in the Roth and Lang book that storage units are considered blue chip in the US .

[Ahmad Azimi]

We are actualy selling some in Chatswood (Sydney). They are not brand new but rentals are around 8%-10% average. I guess the age doesnt make any difference since you cant claim any depreciation on it anyways. You have to buy 3 or 4 or 5 as a package. Not to sure about the resale value to be honest but it is in a growth area with lots of high rises and retail + commercial.

Usualy the smaller the size of the storage the more rent you can get from it if you compare it as a Per Square Meter. I red somewhere over last 2 years Australia wide it achieved capital growth of 10%/yr.

[handyandy]

Usualy the smaller the size of the storage the more rent you can get from it if you compare it as a Per Square Meter. I red somewhere over last 2 years Australia wide it achieved capital growth of 10%/yr.

I think you are quoting the growth in full blown self storage sites rather then strata titled ones.

Cheers

[Ahmad Azimi]

It's just talking about the industry as a whole. Here I found it.

"The Self Storage Association of Australasia, representing more than 800 facilities, says the industry has grown by more than 20 percent in two years in big cities......Most are owned by property trusts, companies and wealthy individuals but the latest trend is to strata individual units, to sell to small investors and owner occupiers".

"Self Storage Association in Australasia excutive officer Renie Schafer said annual industry growth was about 10 percent, and the key challenge for the industry was it ability to prove the benifits of storage facilities to the general public and the business community".

You never know but it could be the next big thing in property investment.

[Mofra]

You never know but it could be the next big thing in property investment.
Was reading it is a growing trend in the US to store belongings because it is such a consumer driven society that people are literally running out of storage space at home - especially apartment dwellers.

There is a strong possiblilty the same trend could emerge here. The question is of course would borrowing for strata storage units be conducted in much the same way as obtaining finance for regular commercial property?

[Rosez]

Hi,
Am new to this forum. I own a strata storage unit in Melbourne and they are a great investment if you have $25-60,000 to invest. The return at the moment is 7%. We attempted to sell ours about 12 mths ago but apparently the market isn't there for resale. I believe this is due to the fact that it's a "new" investment here and not many people know enough about them.
We can claim depreciation and other costs. We only have one and you can still buy them individually.

[Rolf Latham]

Hiya

As with many niche property investments, take care.

They will suit some structures as good investments and be damn poor to others.

If you need finance with a deposit of less than 30 Plus % then this might not be for you,

Like retirement units and serviced apptmnts et al, the stage and maturity of your investment career may predicate more mainstream investments for now.

ta
rolf