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Storage Units

Discussion in 'Real Estate' started by pudsa, 7th Jan, 2007.

  1. pudsa

    pudsa Well-Known Member

    19th Oct, 2005
    Not sure if this should be in the RE thread but anyway does anybody have any thoughts/comments on storage units as an investment. Either from personal experience or simply hearsay. We ( me n the boss) are invested in a number of managed funds and a couple of IPs however we are considering diversifying further and have been approached with an offer to buy a small set of storage units in country NSW. Dont have a lot of experience in this field and would be keen to hear what others think. :)
  2. TryHard

    TryHard Well-Known Member

    17th Aug, 2005
    Had a really interesting beer-fuelled conversation with a guy who was planning a Storage Unit complex on the Mornington Peninsula (I think). We were in a pub just before a wedding at Woodend Vic, only having met across the bar and realising we were both debauched and unfortunate enough to know the groom.

    He had found a guy who was known as Australia's storage unit guru - he did the number crunching and gave them all sorts of tips on how to make it work. I have no idea who the guru was, but I gather he was Melbourne-based. I'm also not sure if the storage unit thing went ahead, but the guy was keen.

    The guy telling me (whose name escapes me) said he would have done all his dough if he had not found this mentor - such was his storage unit wisdom on offer.

    Shortly after that statement I believe I fell asleep somewhere in a corner of the pub, so I'm sorry the lead is not that 'hot' ;-)

    Maybe ringing around Melbourne storage unit complexes might unearth who the suggested guru is in real life ?

    Cheers and GL
  3. handyandy

    handyandy Well-Known Member

    6th Jun, 2006
    Sydney Nsw
    Here is a link to the association.

    I looked at self storage some time back. But basically felt that it was to late with the returns having been affected by the property boom. This may now have changed, I don't know as have not re examined this oppurtunity since the returns were down to 8-10%.

  4. Jane

    Jane Active Member

    16th Aug, 2005
    Cap Rate and Commercial Property Investment

    Hi All,

    I've read with interest your comments and wondering if you've assessed these storage units using a cap rate (capitalisation rate)?

    I've looked at commercial property previously (although been busy to date with a development) and still will consider it. However, at the time of looking (mid 2005) and after discussing with an experienced investor, I decided that the returns weren't that great, or as great as they could be and that, like your comment previously, the returns were down below 8%.

    So I'll have to look at this again to see where the market is currently and do my assessment.