Looking at one brand new storage unit in Townsville.
Purchasing price: $139000 for a size of 91sq meters. Guaranteed return of 9% for 10 years with
market revaluation every year.
Costs per year:
Rates: 350
Body Corporate: 910
Some other minor costs-may be.Is it a good investment? Neven done storage unit or commercial before. Will it be easy to resell?
And how about capital growth?Thanks,
Redlilia,
Not sure what the demand for storage would be in Townsville.
Is it is a building designed specifically for storage?
How many in the building?The market for storage units is much smaller than for a residential property, which doesn’t necessarily mean its a bad investment choice.
I would have thought the need for storage in Townsville wouldn’t be as great as compared to a capital city (?) I know in Melbourne, they have had some good increases, but so has most property in the last 3-4 years.
To ultimately give an opinion, I would need more information as above. On the surface, I would be wary.
James
Redlilia
You will need to do plenty of homework.eg Who is managing the property? Is it one of the national storage companies? If market revaluation, bear in mind this might fall.
How much storage exists or is planned for Townsville? Can your storage space be divided into smaller units if that is where the market is in the future?
What is going to be stored? 91 sq m is a large area for self storage, much more space than the contents of an average 3 br house
A mob advertised in the Finanacial Review on Thursday p 18 offering strata title self storage Melbourne CBD yields from 8.1%
National SElf Storage sold a number of their complexes into a property trust managed by APN last year. Not sure of yields
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