Why You Condiser UK Self Storage Investment
Why is self storage investment growing in popularity? All around the planet, people are looking for new investments to make their money work for them. In past years, it was not as difficult to make lucrative investments in the stock market, but with financial markets being relatively unstable nowadays, many people are becoming cautious with investments which may or may not generate a profitable return.
If you are ready to invest, but you are looking for alternatives to the traditional markets then consider a self storage investment to put your money to work.
Nowadays most cities, if not all of them require self storage options available. Self storage facilities have grown in popularity over the past 20 years. Nowadays the demand for self storage is rapidly increasing especially in the United Kingdom where demand is high and supply has still to catch up with that of the more established markets like the USA.
In relation to more mature markets, the levels of self storage market penetration in the United Kingdom is low at just below 0.5 Sq/Ft per person. The US has in excess of 7.4 Sq/Ft per person and Australasia has 1.1 Sq/Ft per person.
Also despite such high levels of market penetration, the US market is still growing at 10-15% per year (based on net lettable space). These statists clearly indicate that the UK market has a lot more room to grow.
One of the great things about investing in self storage, apart from the low entry level and high yields, is the fact that there is not much owners need to do once the initial investment has been made as the self storage facilities are normal operated by a specialist management company which require very few employees, also maintenance costs are very low.
Whether you are buying a whole facility, an individual StorePod, or you plan to build your own self store facility, you should be able to earn a good ROI if you choose the right location with a high populated area with good transport links, or maybe a location with high demand like near an airport or business centre for example, and if you can find a place with none or little self storage facilities already available then your investment should be successful.
One self storage investment opportunity in the UK is being offered by Experience International with a guaranteed yield of 10.27% per year. Investors buy ‘individual storage units’ known as ‘StorePods’ and enter into an agreement to sub-let the units to a well-established management company who in turn sub-let the units under license, to end users.
If you are looking for alternative investments with low entry levels and good returns then consider storage investment. Storage facilities are needed almost everywhere, and they can be quite profitable. There is the initial cash outlay as with most investment ventures, but once you have invested your money into such a business, you can generally sit back and watch the money start to work for you.
