Would you invest in this commercial property?

[blossomoz]

Storage Units

Yes, they seem to be flavour of the month at the moment. They are being advertised on radio here in Sydney. Look at www.stratastorage.com.au

Personally I wouldn't touch them. They don't seem to be up front about all the costs & try reselling it - it might be really difficult. I think they are trying to appeal to newbies. It's no wonder that people only buy one property & then sell.

I don't like too many people involved in my dealings. With residential property you have much more control over what happens.

Cheers everyone
Blossomoz

 

[agent 86]

I'm getting very serious about a set of storage units but with a couple of big differences. See what you think.

Asking price $670k
Seller (a builder who did the reno) will rent back external space for $24k for a year's use. Obviously I would prefer to give him free use for a discount on purch price tho.
It's on 3036sqm of prime land in the dinky suburb and close to 100s of new units. Must be 100% land content!
Plenty of room for further development.
Close to the marina so the vacant land could be used as boat storage (How much does it cost to store a boat?)
Netting 9% return as is.
It has a nice little office from which I could run my existing biz.

I am willing to sell my IP (possibly $250K equity) to fund the 30% so I would have genuine income from it. It may be a good retirement vehicle for me and I do want to retire shortly.

Thommo

Sounds good so far Thommo.

What are the negs/weaknesses?
Have you checked the council re existing/future Zoning plans etc ?
Boat/Caravan storage is this allowable also?council? extra insurances??

btw Wish i was up your way this weekend.
Half my family in Townsville this weekend, but someone has to stay home and mind the fort though.

A86

 

[hrhpablo]

Yes, they seem to be flavour of the month at the moment. They are being advertised on radio here in Sydney. Look at www.stratastorage.com.au

Blossomoz, I went to this url but it said "Site Currently Under Construction". Wasn't sure if that was a pun or not?

 

[Jakk]

I'm getting very serious about a set of storage units but with a couple of big differences. See what you think.

Asking price $670k
Seller (a builder who did the reno) will rent back external space for $24k for a year's use. Obviously I would prefer to give him free use for a discount on purch price tho.
It's on 3036sqm of prime land in the dinky suburb and close to 100s of new units. Must be 100% land content!
Plenty of room for further development.
Close to the marina so the vacant land could be used as boat storage (How much does it cost to store a boat?)
Netting 9% return as is.
It has a nice little office from which I could run my existing biz.

I am willing to sell my IP (possibly $250K equity) to fund the 30% so I would have genuine income from it. It may be a good retirement vehicle for me and I do want to retire shortly.

Thommo

Thommo,
you sound like you've been around and can obviously do the math.
you say net return 9%, how much of your involvement, if any to achieve this?
don't forget to value your time. what happens to return in 12 mths when builder no longer paying you 24K. as for external storage, check planning permit to see if allowable. check for future similar developments and the main one....can you add any more fascilities, more units, convert part to secure document storage.
you also say, must be 100% land content....whats holding you back.
I doubt you'll be able to buy this at this price in 20 years time.

regards