Storage sheds ??????

Actually when you look at it that way you would try to build the total 50 sheds if the bank lends the money becouse the last 25 sheds make it a good earner.


Im sure im missing heaps so please throw your thoughts at me.

You would stage the development as it could take 2-3 years to get full. Check Council requirements. Self Storage association is useful starting point.
 
** Bump **

Some interesting info above.

Some seven years on, is anyone playing in this space either as a freehold landlord, leasehold operator or freehold/leasehold owner operator?

What type of returns are common in the various scenarios?

I sold my Removal/Storage business 3 years ago.......what a PITA Storage was.
 
What was the main pain Jim?

The people who store in general.True story

She moves her half of house into storage,without telling him whilst he was at work.He comes to site with police without her and demands entry.police advise to open container and he removes several items.
She sues me :eek:

After 2 court appearances,it is thrown out and she was told to take the civil route against her former partner.

Payment was also another drawback with storage clients........out of sight.........out of mind.
 
Despite the PITA issues Jim1964,how was the return?

Personally i find a high demand and hey you could have capitilized on a reality program,another angle?

Food for thought,media loves drama.

Cheers
 
I have a bit of experience, close relative has 4 different sites in rural nsw, mainly 3x3m and 3x6m units plus caravan and boat storage. Colour bond sheds with renters having an access key to gate of block and providing own padlock on unit. I'd have to recheck but returns have been 20% +. One positive is not covered by residential tenancies act, so no pay, cut the lock and sell goods. Most are in smaller towns that a lot of investors would not even look at and vacancies are very low
 
Thanks for the replies folks. The problem I have is delineating the cost of the business component from the asset. Even buying (the ones I am investigating) at 10-12 % net........basically I'm buying a part time job or needing to have someone do it part time and possibly have them live on site.

Much of the business is quite automated and plenty is done online, however there still needs to be a presence five or six days a week even for say six hours per day. Emergency call outs are another issue if security gates fail unless a caretaker is on site.

Whilst self storage seems to be a growing requirement the other issue is how specialized the asset is. What else could it be used for? :confused:

One in particular I have my eyes on has the upside of being able to go up another level adding a further 50 % to the lettable space. Vacancies of those that are fairly well run are about 15 % (so 85 % occupancy).

I couldn't find much info for Australian assets of this nature (aside from the self storage association) however these things are huge in the US.

Thanks again for the replies. Other insights and opinions on alternate uses for the asset in case of business failure?
 
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