When investors consider real estate, they may want to think about self storage. With no tenants or early-morning calls about clogged sinks, the self storage market is a simpler way to get a return on investment, and right now the market is booming. Investment Real Estate, LLC has been working with smart investors and sellers for over 20 years, and we can help you, too.
Is Self Storage a Good Investment?
If you’re wondering whether buying storage units is a good investment, the answer is yes! Self storage is a chance for individuals to store their possessions while they move, attend school, stage their home or travel. For investors, self storage is a low-maintenance way to earn returns on an investment. It is ideal for beginners who want to invest without putting in hours on property management, and it’s wonderful for experienced investors seeking to diversify.
Why Invest in Self Storage Now?
Self storage investing for beginners and experienced investors makes a lot of sense in today’s market because it offers:
- An attractive return on investment: Both the return on investment and compound annual growth rate for this industry are expected to grow in the next five years, meaning this sector offers great returns. Self storage return on investment has been outperforming retail, office, apartment and industrial spaces since 2009.
- High demand: Close to 10% of households currently use a storage unit. With interest in real estate and travel rising right now, demand for self storage will likely see a boost as well.
- Recession resistant: Self storage is always in demand. When the economy is booming, households take longer sabbaticals and move homes, requiring self storage. During a downturn, people may be returning to school or downsizing, which means they may turn to self storage as they adjust their housing situations.
- Low maintenance costs: Self storage spaces don’t need much maintenance or management. Software, kiosks, surveillance systems and remote sign-ins can reduce the need for property management and even on-site visits. With self storage, you only need to keep the units clean and updated without worrying about things like décor and office or apartment finishes.
- Multiple investment opportunities: Self storage investment is flexible. You can invest with storage REITs even through passive investing. SBA 504 loans are ideal for self storage investments and allow you to maximize your returns. You can borrow with as little as 10% down, with rates locked in for 25 years. Self storage investing is also an option for syndication deals, where investors combine their capital to purchase a self storage business. Another option with self storage is to offer add-on services and products, such as dollies, packing tape and moving services.
Is Now a Good Time to Invest in Self Storage?
Self storage real estate market conditions are excellent right now, and research forecasts suggest they may stay so for at least the next few years. If you have been looking for a way to expand your real estate portfolio and make it recession-proof or want to start investing, self storage is a viable solution.
Investment Real Estate, LLC can pair you with the right opportunities to begin investing in self storage. Our team of experts offers a variety of services for buyers and sellers, as well as a robust portfolio of property listings for sale across the Mid-Atlantic and Northeast. Call us at 717-779-0804 or reach out online to start.