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  • Storage Zone investment

    Is anyone considering or has activated investment in Storage Zone? I know Dean thinks it's good, just wondering what others think.

  • #2
    Well as with any investment, the people recommending you buy it will always think it's a good thing. They are usually getting paid a commission of some sort to say so.

    Can you post details here so that we can evaluate it without having to go searching for it?

    David
    Squadly dinky do!

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    • #3
      It's here, no trouble to find the facts

      http://www.storagezone.co.nz/

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      • #4
        I rented a 5x3m storage unit for over 9 years and it cost a lot less than the $300+/month that lot are charging. If I were you, investigate the competition and see what they charge the punters.

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        • #5
          If you attend an evening we give you a list of every company's charges in Auckland. Quoted prices for SZ are in the lower middle price wise, the actual rates should be higher given the fact that SZ is unique in being a custom built facility, having 24/7 access and online management.
          Plus 18 months at least before it opens.

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          • #6
            $300 a month for a storage unit you must be joking, I'll believe it when I see it but it not being open I guess easy to quote any price they can make up, just like apartments off plan being sold saying getting very high rent or high value which is just made up then when actually built reality strikes the cat.

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            • #7
              Well that was constructive....

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              • #8
                Reality strikes my cat every time it gets up on the table. Usually in the shape of whatever is in my hands at the time. :-)

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                • #9
                  Does the company market your privately-owned bin? How do they allocate them to potential renters? The rental is ok - I just rang another company and they were cheaper but not hugely so.

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                  • #10
                    The income is prorata'd so you get paid whether your unit is empty or not :-).
                    The facility is run by a management company.
                    Net return is 7% after all costs.

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                    • #11
                      Originally posted by pooomba View Post
                      Net Return is 7% after all costs.
                      Are you sure that is after Body Corp, Rates ARC and ALL other ongoing costs or is that just the developers first year guaranteed return ?

                      At 7% this might make sense as an investment if you have the cash, but not if you are borrowing while interest rates are still well above 7% (unless you want to be negatively geared.)

                      Be very careful with Strata Title Admin, it cost us over 10k to have them removed as Body Corp Secretary for one of our complexs. We found they did not have good control over, nor take a careful interest in the affairs of the complex, & refused to step down when asked to do so.
                      They were also tied in to a set of bodycorp rules that were put in place by the developer which favoured them (STA)

                      What capital gain is expected from these? (& based on what comparable businesses)
                      If they are simply cash neutral, then they rely on capital gain to make it worthwhile as an investment.
                      Food.Gems.ILS

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                      • #12
                        Come along and have a listen Keith. 7% is net. If you do some homework on storage facilities their cashflow and CG is outstanding nationwide.
                        It will be 18 months before these are built and because of their low cost they can be put on short term P&I then all the income is cashflow forever. That's why I like them so much!!

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                        • #13
                          They seem to be around 3k a m2 Dean is that right?

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                          • #14
                            Yes $2733 sqm on a 15sqm unit at 41K

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                            • #15
                              Just as an aside a well known auction real estate company quoted one of my clients $80,000 for their 42m2 with a 8m deck apartment. Less than 2k per sqm.

                              Shockers.

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