EP. 1224 WHY WOULD I BUY A STORAGE VAULT BILLY?!

Discover the secrets to maximizing space and investment potential with Billy Jury, as he shares his personal experience of purchasing a storage unit in Sydney's bustling property market. With urban lifestyles cramping into smaller living quarters, we explore the compelling reasons behind the surge of buying over renting storage spaces. Hear how savvy investors and space seekers alike are turning to these units as a solution for decluttering life and diversifying portfolios.

Peek into the world of cubic meters and ingenious storage maximization techniques like mezzanines and car stackers. Billy offers an eye-opening perspective on just how spacious these units can be, shattering the misconception of cramped storage cages. Whether you're a business owner in need of inventory space or simply trying to breathe in your apartment, this chat sheds light on the titans of the storage industry and how individuals are making their mark. Tune in for a conversation that stretches far beyond the confines of a typical storage unit.

Transcript

Speaker 1: 0:01

Kenard's storage storage king. These guys are going bananas, but now people are buying storage. Billy has bought storage. We're going to talk about why Billy bought storage.

Speaker 2: 0:27

I'm the ringleader, so get up Good morning Billy Jury.

Speaker 1: 0:35

Good morning to you.

Speaker 2: 0:37

How are you? It's a fabulous Monday.

Speaker 1: 0:39

Billy the old man the old man wrapped up in a young man's body.

Speaker 2: 0:44

Good morning yeah.

Speaker 1: 0:46

How are you today, bud?

Speaker 2: 0:47

Yeah great, the old man wrapped up in a young man's body.

Speaker 1: 0:50

Good morning.

Speaker 2: 0:50

Yeah, how are you today bud? Yeah, great Talk about storage.

Speaker 1: 0:52

Storage wars, storage Storage. What did you do on the weekend? Quickly, I did swim.

Speaker 2: 1:00

I did a lot of a little bit of spa and a steam room Whoa I went to.

Speaker 1: 1:04

Costco a steam room, whoa. I went to Costco and Bunnings Storage and I did find out that Bunnings is number one on the weekend list for Australians.

Speaker 2: 1:22

Yeah, wow, it doesn't surprise me that much.

Speaker 1: 1:31

It doesn't surprise me Australians yep, it's, it's, it's a, it's a serious pastime for people and I did a little bit of that, although I did with my brother more, and we walked every island Bunnings, which I'm sort of liked as much as I didn't like, but anyway, anyway, this, guys and girls, this is a really interesting topic because lifestyles have changed People, the trend of, I guess, smaller blocks of land and, I guess, apartment living is clear.

Speaker 1: 2:01

The necessity for storage, be it for a car, be it for moving a house, improving your existing living in your existing property, is massive and, institutionally, your Bunnings, your storage king and your Kennards guys have really picked up on this and, you see, you're starting to see these huge storage centers pop up all over sydney the last five years now. What we're also seeing, which is even more popular, is, instead of renting it, people are saying I will buy it for myself or I will buy it and rent it out. So we're going to dive into that today and, over a five minute interval, we're going to tell you everything you need to know, in and out, real quick yeah, it's amazing.

Speaker 2: 2:46

Well, first of all, I think this is a category where people people don't even know about, so you can't buy what you don't know. And I think if people had the numbers side by side and they were looking at a long-term rental before a purchase would stack up to get your own place. So it's pretty exciting.

Speaker 2: 3:03

We've got um now we've got a site that we're looking after at the moment in Alambi French's Forest and it looks a little bit like that one at the top photo. They are big as well. So like people think of storage unit and think two, three square metres like a storage cage, these are.

Speaker 1: 3:24

you know, these are like top photo there yeah, one there, right there, so you can see there, you can see these particular ones are two story um, so they're 5.4 meter high ceilings. Now a couple of things I want to. I want to. I'm going to handle this by way of when someone calls me exactly the top three, top five questions that I get asked, and Billy, because you've actually purchased, I'm going to ask you those questions. So, billy, what are storage units? How big are these things? I don't get an idea from 22 square meters.

Speaker 2: 3:59

so you, your average like garage would be about 14, 15 square meters. So it's basically one and a half in size but double height. So you put a mezzanine in or you put some shelving in, you have the capacity to double that floor space. Very, very smart. So they're big, they're meant for deliveries, they're meant for vehicles of all kinds. You can put car stackers in them. Commercial grade okay.

Speaker 1: 4:32

So I do have to say to people, when you're looking at storage, you've got cubic meters on the ground as in how long and how wide, but sorry, but sorry. Cubic meters are just square meters. Cubic meters are just square metres. Cubic metres are just as important because that's your height. So you're effectively doubling the size of your units. Now, billy, do they make capital growth Because you've bought one. So I want to deep dive.

Speaker 2: 4:58

Yes, we've got the numbers, not just an opinion but a fact that they've made capital growth as much as 40 50 across other sites, same builder, same same product, very successful. And what I love about that is it performs just as strong as the residential side of things in the same years, so very strong so I've put this together here because you can see that so generally I've found they've actually performed better than residential units.

Speaker 1: 5:31

So over a 10-year period, more than double. Over a five-year period 50%. They do make money. So how much are you buying it for? What did you buy yours for?

Speaker 2: 5:41

$198,000.

Speaker 1: 5:44

Okay, what does it rent for? Are they hard to rent out?

Speaker 2: 5:49

no, the demand's there because these, these things are the best of the best, um, um, these things are the best of the best, like your, your um. Companies are taking them on. You know small businesses are taking them on. People looking for, you know, space to put toys are taking them on. You know small businesses are taking them on. People looking for, you know, space to put toys are taking them on. So, you know, widely appealing. They rent for about $270, $300 a week, about 7% return. And no, we are. You know can't get them quick enough. There's just not enough supply, that's unbelievable.

Speaker 1: 6:29

So the rent's good, the capital growth is good, the price is low. It's technically still a property. How much are the strata levies?

Speaker 2: 6:35

strata levies maybe about 600 a year, very, very low. Because you share, yes, you share. You know good, good, you know there's good numbers in the building, so you share. You know the low strata benefit.

Speaker 1: 6:52

And I guess I guess as an investment. It's nice, you know, having to replace kitchens, bathrooms, paint and carpet like with an apartment. You're in a high capital growth area so you can actually buy at a low price in Sydney, but a good area in Sydney, which I love because that helps you with your capital growth. Now I see people, some people funding it with super as well. I think did you do that?

Speaker 2: 7:17

Yeah, so you've got the opportunity to purchase with your superannuation. That's something brilliant because you can actually buy yourself. You know time. If you're looking at a brand new project where you can use just 10% deposit and then price lock your property and top up, your school president go through. So that's exactly what you know clients are doing in this case. They're finding the property, they're financing it with a small deposit and then they're worrying about the repayments in three years. What's the continuing to save and pop up?

Speaker 1: 7:55

what do you mean by price lock?

Speaker 2: 7:58

once you exchange, you've got, you've priced, locked your property. So even if the property market, you know, improves, strengthen, prices go up which they tend to do throughout the cat, throughout the build anyway, because you're buying in that stage, one uh prior to construction, with a bit, of, a bit of price incentive there from the developer. Uh, there's, no, there's no change on price at the end of the, at the end of the uh project.

Speaker 1: 8:24

You know what you're getting from it. You put a deposit down in 19 800. You're settling in two or three years. Do you have to pay any more along the way? Negative no, I can't just. Are they in depth of in there any interest repayments to you know, paid to pay along the way?

Speaker 2: 8:43

absolutely nothing no interest, no mortgage, no, no finance stress. This didn't. Another reason I really like this is it didn't impact on a personal uh, you know lending power. So it's completely separate to different entities. Um, if you have hopes of you know doing other business ventures or other personal ventures, you don't have to worry about that when it's um, you know, in your super completely separate.

Speaker 1: 9:08

Okay, so it rents well. It has good capital growth. It's some people are even buying these things in their super. They're 198 grand, the one that you bought. What are your? It's the cheapest property on all the beaches. What are the other concerns that you had when buying? So I guess you could also say what the buyers ask me when they're buying it, I think spatially. Oh, I do have to say something to consider about these guys is when you're looking at storage, people often think you're going, you're putting your car into a lift or you're trolling into a lift. Um, if you've got a storage unit that you can drive your car up to, it has a proper garage door, you can reverse your boat into it. That is way superior than having to go up a lift. So another thing as well ground floor. I like your ones because they're ground floor, so often ones that I've sold. They're on level two, level three, with vehicle access. You have to corkscrew up the building to get to yours. Yours are all on one plate.

Speaker 2: 10:15

You can get a vehicle and a trailer all the way through it's really important because that you pretty much rules in or out who you can. You know who you can service with these, with these bolts so um, yeah, factor in if you're going up car lifts and things like that, you could half your half your rent to return you're half the perspective and billy.

Speaker 2: 10:45

You're feeling nervous and you're feeling excited. Which, which? Which? One more, uh, to begin with, nervous, now excited, excited it it's. Um, it was all I'm not, it was all the unknown to me, so it it was nice to be coached through the process. I think being local and being able to drive and look at other sites was the biggest thing that put my heart at rest.

Speaker 1: 11:09

Seeing the success of the other ones, I think, yeah, right, okay.

Speaker 2: 11:13

Yeah, and going up and visiting it, because until you've seen one in person, you're always going to assume it's like a normal car space. It's far from the truth. These things are impressive. These things have got internet in them. They've got um lighting in them. Yeah, they've got some have mezzanines in them.

Speaker 1: 11:29

Um, these are they got high, high and they've got their own high amp power. You can put car. I've seen people triple stack cars In some of them they have the height or double stack cars, you know, because they got the hoist. You know I've seen them put mezzanines all the way through the middle so it's like another ceiling all the way through so they can utilize that second story better. Yeah, very interesting stuff, bill. Thanks for your, for your time today everyone. Hopefully we helped you about storage. This category is not going away so much so realestatecom um has and real commercial have introduced the category asa. Click down on their port, on their portals now on real commercial. So that's the. You know it's a category that's being recognized now it's not going. So it's a category that's being recognised now it's not going away. It's making money and people are loving it.

Speaker 2: 12:20

There you go. Cheapest property on the Northern Beaches.

Speaker 1: 12:23

Cheapest, northern Beaches. See you guys, have a great Monday, have a great week, thank you.