Self-storage Real Estate – Why Should You Invest in it?
First Things First: What is Self-Storage Real Estate?
Have you ever wondered where to put extra things in the house that do not fit in the closet, loft, or garage? You could opt for offline storage homes or a self-storage unit. A booming sector, self-storage facilities cater to a growing number of customers who need to store excess household items. The good news about investing in storage space is that it can also generate additional income.
Why is Self-storage a Good Bet?
The self-storage business is a year-on-year performer with reliable results. Canada currently has 2-2.5 square feet of storage space per capita, while the US has about 9-10 square feet per person. There is a gap that needs to be filled, which makes storage homes a promising investment sector. Whether there is an upward or downward turn in the economy, storage houses continue to generate consistent profits and maintain positive cash flow for the investor. During an economic boom, people buy more, and they need somewhere to store it. A slump in finances can lead to the downsizing or relocation of homes, and therefore less space.
Storage lockers are a simple investment. There is often no heat, little maintenance, and if you want to make it a luxury unit you put in a light bulb. — Ozzie Jurock (Vancouver real estate consultant), February 6, 2015
Who is it for?
Typically, investing in commercial real estate requires experience. Real estate investors carefully evaluate and then decide to purchase a property. However, a storage unit can be purchased by anyone with additional funds, who is willing to earn passive income. If you are over 50, this could very well be your retirement plan. Whether you are an individual or a small business owner, investing in self-storage can be a great idea. If you are new to buying property, check out our blog for first time home buyer, to get some tips. You must make sure you get the right deal, and this is where we can help, whether it is a row house in Niagara Falls or any type of homes for sale in Toronto. You can also look for properties on Save Max website or contact one of our realtors. Click here to enter your contact details and we shall get in touch.
5 Advantages That Make Self-storage a Lucrative Investment
- Self-storage requires less maintenance than other real estate investments, leading to low operating costs.
- They are easier to rent out.
- Good, well-operated self-storage is always in demand, with both individuals and organisations needing extra space.
- Once released, units have a faster turnaround time (15-20 Minutes), before they are ready for the next customer
- Short term leases – A typical Self-storage lease is for 30 days and auto-renews for both owner and tenant
What does the Future Look Like?
The future looks bright. The Self-Storage Association describes the $20 billion (U.S.) industry as the “fastest-growing segment of the commercial real estate industry over the past four decades,” as reported in The Globe and Mail. Numerous studies have shown that the demand for self-storage real estate has far exceeded estimated projections and is ever-increasing.
If you have come this far, we think you should at least explore more if not invest in storage homes. You can approach a professional for buying or selling storage homes if you wish to look at options such as Real Estate Investment Trust (REIT) or self-storage equity and so on.
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