Storage Unit

Viewing 4 posts - 1 through 4 (of 4 total)

Rudy
Member
@rudy
Join Date: 2004
Post Count: 7
January 27, 2005 - 10:29 am
Hi all
I hope this is the correct forum board for this query.
I am thinking about purchasing a storage unit in Sydney managed by Storage King, the figures seem to add up and they provide a guaranteed return of 8% net for the first three years. Prices range from $20k to $50k.
I am purely seeking comments from “forum posters” if anyone has heard any good, bad or ugly news or comments.
Thanks in advance
Rudy
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 27, 2005 - 1:33 pm
I think there have been a few posts about this before.
8% yield is not very impressive. Some things to think of:
– possible low capital growth
– hard to finance
– high management fees?
– hard to sell
– hard to add value
etc
Compare this to buying $50,000 worth of share for example.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email me
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
woodsman
Member
@woodsman
Join Date: 2004
Post Count: 714
January 27, 2005 - 1:42 pm
Hard to add value to a storage unit. Can do that to other property through reno or re-development.
Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
January 27, 2005 - 2:23 pm
Hi Rudy,
8% for a storage unit is not flash – and the only reason someone would/should consider a storage unit is cashflow.
If you have equity to burn and need some cashflow – maybe but as indicated 8% is not that great on these types of properties.
Derek
[email protected]
Property Investment Support Available.