Self-Storage: The Investment You Didn't Know You Needed (But Do You or Don't You?)
Ah, self-storage - the wild wild west of self storage. The quiet, unassuming & the unsung hero of the investment world. While others chase after trendy startups and volatile stocks, savvy investors are turning to the humble storage unit. Why? Because nothing says "stable income" like a room full of someone's forgotten items and holiday decorations that average 7 and half years in a storage unit..
The Rise of the Storage Empire
Australia's self-storage industry is quietly booming and has been for quite some time, with over 2800 storage facilities, housing 573,000 units across 5.85 million square meters. Occupancy rates hover around 90%, and with 250 new developments worth nearly $2 billion in the pipeline, it's clear that this isn't just a passing fad here in Australia.
Why Investors Are Silently Loving It
Self-storage offers a low-maintenance, high-yield investment opportunity for the savvy investor. Unlike residential properties, there are no tenants complaining about leaky taps or demanding renovations/upgrades. Instead, investors enjoy steady cash flow from multiple renters on flexible month-to-month leases. No unnecessary communication, just a swipe of the credit card monthly and easy increase of the bank balance. Additional revenue streams like 24/7 access, insurance, and moving supplies sweeten the deal for the client but also the owner.
Types of Storage Facilities: More Than Just Garages
Climate-Controlled Units: Perfect for wine collectors, art enthusiasts, and anyone who fears the wrath of humidity.
Drive-Up Storage: For those who want to store their boat, caravan, run their side hustle or questionable life purchases but at a convenient spot.
Indoor Multi-Level Facilities: Think of it as a high-rise garages piled sexily on top of each other.
Mobile Storage: Storage that comes to you. Because taking your boxes to a storage facility is so last early 2000's. Pods, shipping containers, wooden large boxes, the options are endless.
The Future Looks Spacious & Not in the Natural Way
With market yields between 5% and 6.5%, and some prime assets reaching up to 10%, self-storage is seriously outperforming many traditional property investments. The east coast, particularly New South Wales, is set to see significant growth, with 62 new facilities expected in 2025 and another 164 in earlier stages of approval. This is just the latest facts and numbers. This will continue to grow and grow world wide.
Don't Sleep on Storage
So, if you're looking for an investment that's low on drama and high on returns, consider self-storage & the self-storage world - it is full of opportunity. It's the quiet achiever of the property world, reliable, profitable, and always in demand. Plus, it's a great place to store your collection of Pokemon & Legos. Just saying.