Real estate investors always aim to multiply and improve their investment with lucrative ventures. As a result, they have diversified assets and investment portfolios. Out of all the several types of assets and investments, self-storage units are one of the best. The amount invested and the risk tolerance born are the best way to determine the best investment option. And, investment in storage units pretty much qualifies in this. If you are looking for Storage in Wigan choose The Storage Team for best services.
What are storage units?
Well, storage units are used by people and businesses to store all kinds of belongings. These belongings may include goods, materials, documents, vehicles, etc. People and businesses have to pay rent to store their belongings in these units. Storage units play an essential role in the lives of people all around the world especially, Americans.
Statistics reveal that the storage industry generates more than US$45 billion in revenue annually. Other data on this sector indicates also shows that storage unit investments hold potential for massive revenue. This massive revenue is growing at an increasing rate. It is expected to have the potential for unlimited development in the coming years.
Now, let’s dig a bit deeper into Why Are Storage Units Considered One of The Best Income Producing Investments:
High ROI
If you are looking for attractive returns on investments (ROI), then storage units are the best option for you. Not just return on investments, but the compound annual growth rate is also expected to skyrocket in coming years. This sector is expected to offer great returns, especially in the next five years.
Since 2009, it’s been observed that the ROI the storage sector’s ROI has been way more than retail, office, apartment, and industrial sectors. From 2009 to 2018, the storage facilities worldwide have seen a strong track record of a high return on investment. The annual ROI for this period has been an average of 16.9%.
It’s no surprise that this is a highly sought-after investment options form of real estate. Be it conversions, rehabs, or new construction, you can always find ways of investing in storage units in your area. There are plenty of opportunities out there to invest in this sector. All you need to do is just know which door to knock on.
High demand
A few months ago, Self-Storage Association did a study to find the number of households using a storage unit in the US. It was found that approximately 10.5% of all households in the US rent a storage unit. The most rented storage solution was self-storage units.
Nowadays, people indulge a lot in activities like moving, shifting, decluttering, renovation of their houses, etc. People are downsizing their living places and looking for extra spaces to store their belongings safely. This is automatically adding up to the number of storage users out there.
There’s also a huge demand for ancillary products and services alongside storage units. These products and services include locks, boxes, moving services, transportation, etc. People acquire them as a bonus or add-on purchase. As a result, you get another source of income in addition to the storage units.
Resistant From Recession
Several studies over the past few years have proven the storage sector to be recession-resistant. In addition to this, the sector is projected to have a CAGR of 134.79% in the next 5 to 6 years.
There are very few investment options out there where demand remains and is also recession-resistant. As a result, the opportunities for investors are endless in the case of storage units.
Storage will always be in demand, and in case the economy is booming, the demand for these units will also boost alongside. The pandemic is also forcing most people to downsize and restructure their homes and lives. So if you’re looking for the next best investment opportunity, this is it. It is one of the most ideal times to enter the self-storage industry.
Easy Maintenance
Compared to other real estate investments, storage units requires less maintenance. With storage facilities, all you need to do is just find individuals with experience in the industry. Then be it managing the facility, overseeing the day-to-day operations, or anything else, they can get it all sorted for you.
Also, these days, there are advanced technologies and software programs. You can use them for the maintenance and management of your property. Not only the maintenance and management of storage units are easy, but it’s also super budget-friendly.
Conclusion
Research forecasts suggest storage units are one of the best income-producing investments right now. We hope that this article was successful in helping you determine where or not to invest in storage units. If your decision is in favor of investing, you shouldn’t wait any further and get started immediately!
