Self-storage units should be thought about in a variety of circumstances. Most individuals think that self-storage units are only being used by homeowners that are moving and need a place to hold some of their prized possessions for a while. However, this is not the only demographic that uses a self-storage service. If you are an investor in the real estate industry, you may want to think about using a self-storage unit. Read on to find out why self-storage units can be a worthwhile investment.
Is self-storage a good investment?
The short answer is yes. Self-storage units can be a fantastic investment, especially if you are looking to hold your possessions in an area that you know is safe, whether you are moving house, moving schools, leaving home travelling, or trying to sell your home and then staging it. If you are an investor, hiring a self-storage space is a low-maintenance method to earn a return on investment. If you are an experienced investor, you will know that self-storage is definitely a good investment. Why should you invest now? Read on.
Why now is the right time to invest
Self-storage in the current market is a great investment, you should think about investing now because you can benefit in a number of ways, one being that it is an attractive return on investment. The return on investment and compound annual growth rate are both expected to increase in the next decade, this further implies that the sector is a great one to invest in as you are all but guaranteed a return on your investment. To show how much this industry is booming, self-storage has actually been outperforming the retail industry, office industry and industrial spaces industry for the last 3 years.
Another benefit of investing in self-storage spaces is that they are in high demand. It is estimated that in the US around 10% of households use self-storage units. As the current market for both real estate and travel is on the rise, this is only going to increase the popularity of self-storage spaces.
Another reason why you should consider investing in a storage-space is that they are always in demand. The economy is finally getting back on its feet and when this happens it means that households are more than likely to upgrade their homes, thus, requiring a self-storage space. Or, on the opposite side of things, people that are deciding to downsize will also use self-storage as they may be planning on what to do with their items if they don’t find them suitable for their new, smaller home. Even at the peak of the pandemic, people were still using self-storage units as they were decluttering the house or going through some DIY procedures that required important items to be in a safe space.
Self-storage units are also a low risk as they come with low-maintenance costs. A lot of the time, self-storage spaces look after themselves, as there is not much that can go wrong with a blank canvas room, and there are low maintenance and management costs. In a large number of storage places, you will also have use of surveillance systems, smart software and remote sign-ins which allow you to have top-level security for very minimal costs.
Finally, investing in self-storage spaces is extremely cost-effective as there are a number of ways you can invest such as passive investing through REITs. However, what most experienced investors tend to do is to apply for a loan that allows them to then maximise any potential profit. These payments can be made over the next 25 years and allow you to pay back as much as you want each month.