Building Mini Storage Units
10 Reasons Why Now is a Great Time to Build Self Storage:
- Even though the economy has shown signs of slowing, interest rates are at record lows, thus reducing business risk by offering lower debt service and carrying costs during rent up.
- Building now when others are apprehensive, is a smart strategic move to capture the market before someone else does. Proceeding now may delay others from pursuing or altogether deter them from moving forward on a competitive project.
- Building net worth early in life can make planning for retirement easier. Even if interest rates climb, it is still an opportune time to build net worth because commercial loans typically are short term and interest rates will fluctuate. This allows for refinancing when interest rates come down. It is better to get started now with self storage to build your business along with the market growth.
- Self storage offers an excellent return on the money invested with proper due diligence, and in the short term and long term, exceeds stock market returns.
- When commercial construction is down, contractors are more competitive with bids.
- Self storage historically has been insulated from economic downturns due to people downsizing their homes and losing their jobs, which produces a more transient population. Also, divorce rates have escalated causing an increase in storage needs. Additionally many businesses may opt to outsource storage needs instead of adding to their existing facility.
- Needs for commercial use are growing because self storage offers a low-cost solution. More people are also becoming at home entrepreneurs and want their garage for their car instead of their business, again increasing demand for self storage.
- Self storage offers passive income which can provide a vehicle to use passive losses earlier.
- Self storage is a low cost investment which can easily be managed by individuals with little to no development experience. The initial investment is much smaller and operating expenses are much lower than other types of real estate investments. The management task, unlike many other businesses, is not labor intensive.
- Self storage investments offer a higher return on investment with a much lower failure rate than many other real estate developments or new businesses.