Hi,
I am still looking at my very first investment apart from the home I am paying off.
This one has me puzzled.
It is a self-owned storage unit in Myaree, Perth.
It is 13M2 and rents for $220 p.c.m. I would get a strata title for it and my only yearly fees would be to the corporate board of $950 p.a.
I would be paying 7.49% interest on the loan and paying interest only.
It does not seem to be cash positive to me but I may be missing soemthing in the interpretation.
The people selling these units have already found me one with a long-term tenant at the above rent,
and they state that most people purchase them for depreciation and capital growth. I do not want just to rely on capital growth only and am not sure what they mean by depreciation.
Could anyone advise me on its merits please.Hi Jensshed
I looked into those Myaree units many months ago when they first came on the market. I see on their website today that only 12 of 50 have been sold.
From the cost of a 13sqm unit at 7.49% interest and rental of $220pm it seems that you will make $50 pm.. ie $600p/a. However the strata fees are $950p/a.
I don’t believe there could be much in the way of depreciation given the unit is an empty concrete room.
Personally, I’m sure you could find better ways of utilising your money,
There have been earlier threads posted on this topic that may also be helpful.
cheers
AbbyThanks Abbey for your feedback.
I think you may be right it is probably only a good investment if I myself needed storage as I would eventually only have to pay $950 a year for it ($79 p.c.m instead of $220 p.c.m)
Where would I find those threads relating to this subject as I am very new here.
JennyI agree with Abby. Checked these out a couple of months back and it didn’t look too attractive.
220 p.c.m. for 13 sqm equates to 238 /sqm/yr which is an extraordinarily high rate.
If it’s not +CF even at that rate, keep looking.
There is also alot of competition in that area for similar stock. The little thin “Guardians Storage” I think squeezed next to BP and McDonalds on Leach Hway that has been there about 15 yrs seems to be a tidy little goer though…but you’d want the whole lot for it to work, not just one little box.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
You can find earlier threads on your topics of interest via the “search” facility located on the left of the screen. Type in the keywords (eg.. self owned storage units) and relevant threads are provided. Happy reading.
cheers
Abby
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