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Classic Car Storage / Demand?


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#1 gav240z

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Posted 21 July 2016 - 04:58 PM

Hi Folks,

I just wanted to get a sense of demand for vehicle storage in Melbourne's South Eastern Suburbs? I am currently looking at a warehouse for sale and it would be able to house a significant number of vehicles (maybe up to 20+).

Doing some research it seems the going rate would be between $200-$250 p/month for secure storage.

My question is, has anyone here paid for vehicle storage or is currently paying for vehicle storage?

Have you considered it before? Do you know if there is much demand for something like this?

Ideally I'd be looking to rent the space to a business, but.. I am considering multiple options at this stage.

If it was club members only I'd consider putting a lift / small workshop in there that a group of us could use to work on their own S30Z's.

Not sure I'd do that with Joe Public, liability / insurance / demand etc..

Anyway got any feedback on the idea?
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#2 chris240

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Posted 21 July 2016 - 06:35 PM

Talk to Nick who has the car hotel in Fyshwick....do a franchise !
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#3 gav240z

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Posted 21 July 2016 - 08:19 PM

Talk to Nick who has the car hotel in Fyshwick....do a franchise !


You mean Classicman right?
http://www.viczcar.c...061-classicman/
http://www.affordableclassics.com.au/

I sent him a PM no reply yet.

Here is a photo of the space. There is more space to the left hand side and the front has a loading dock area with more covered space.

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#4 chris240

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Posted 21 July 2016 - 10:12 PM

Gavin, run the rental sums first, dont rush in..
Whats the total gfa ? X the $m2 "going rate" for a warehouse in that area....is it $100m2 p/a is it $175m2. ?
Work out the total possible yearly rental , say to a single tenant, take out your statuatory outgoings....just roughly or assume tenant pays all outgoings for warehouse use.... Once you have this figure divide it by the purchase price X 100 to work out a basic % return yield.
Or message me the figures !
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#5 d3c0y

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Posted 22 July 2016 - 08:41 AM

Don't forget insurance...


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#6 dat2kman

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Posted 22 July 2016 - 09:37 AM

I've been doing this for 30 odd years, car storers are not that lucrative, $8-10 per car per day, is the avverage rate.
I'm now back into it, have just bought a 700 sqm tilt slab light commercial, cut into four tenancies, two of which are currently leased,,,, to car guys, storing rare/collectables. High security, clean dust free, etc.

Will look at strata titling them into four individual lots.

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#7 George

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Posted 22 July 2016 - 09:45 AM

High security, clean dust free, etc.
 

 

This would be very important to get any interest.


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#8 TomC18

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Posted 22 July 2016 - 10:19 AM

Gav,

 

I've been looking around for a while with a couple of roadster guys - problem is prices have gone a bit crazy with very low yields, eg 5% or less, so bad time to be buying as an investment.  

 

if you have enough users/mates (or a business use) it can stack up as there are a few cars to be housed...

 

Jason's approach works best - buy big, split them up and lease half (or more) as you can cover most of your costs and store cars in the last bit



#9 gav240z

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Posted 22 July 2016 - 11:09 AM

So I'm not looking at is as strictly an investment.. I am actually considering living there also. There is a large office area (which could be rented separately to a small IT company or similar) but it could also be turned into a decent sized apartment.

Since i'll be in Sydney for a while the plan would be initially to lease the premises to a tenant or a couple of tenants depending on how they wanted to divide it up. Then when I finally return to Melbourne I'd consider moving in, renovating etc..

It's close to a train station, the beach and a large Shopping Center so location wise it's great.

Houses in the area are not much cheaper, and the house I rent in Sydney is actually significantly more expensive (due mostly to land size and proximity to the city).

So I've started to think about ways to buy a place to live but have something flexible enough that will help pay the mortgage. I've been saving money to buy a house for 8+ years now (even when I was living in Ireland). I still think we are experiencing a massive bubble, and a crash HAS to come at some point.

The problem is I don't know when and how much longer the madness can continue. So I want to make sure whatever I'm getting myself into I won't be stuck in a corner later.

So renting the space for car enthusiasts is just 1 idea, I've got a few others but I have never been a slumlord, commercial property owner or owned property for that matter. So I'm doing my research.

Here is a few more photos (you can see the office), I went past in April when I was in Melbourne with the 240z and my long term partner. The good news is the missus is into the idea of warehouse living.

As Locky (Lurch) would say, she's an enabler when it comes to my car habit.

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#10 PB260Z

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Posted 22 July 2016 - 08:00 PM

HI Gav

 

I have thought about doing exactly this many a time. Just can't see it working with a family.

As a bachelor or a childless couple it could work well.

I had envisaged getting one of those industrial units that has a large warehouse at ground level and a mezzanine office / apartment area that way I could viewing windows from  the apartment

 

How does the idea sit with council zoning rules ?

 

Cheers

 

PB



#11 George

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Posted 22 July 2016 - 09:14 PM

Ever since I visited this place I've daydreamed about being a billionaire so that I can do the same in Sydney. A man has to have dreams right...?

http://remise.de/Cla...ish-summary.php
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#12 garvice

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Posted 23 July 2016 - 09:47 AM

Just wanted to chime in and say Very cool. Convincing a misses to live in a shed is incredibly cool. You'll need a big glass wall on your main living area so you can look out over your toys though 😊

#13 PB260Z

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Posted 23 July 2016 - 10:12 AM

Money no object and dreaming -  I would want something like this one.

 

Massive high roof workshop

Mezzanine living

North facing balcony

Bush views

 

http://www.commercia...adId=2012227617

 

 

Lotto time O0


Edited by PB260Z, 23 July 2016 - 10:14 AM.


#14 gav240z

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Posted 23 July 2016 - 12:44 PM

HI Gav
 
I have thought about doing exactly this many a time. Just can't see it working with a family.
As a bachelor or a childless couple it could work well.
I had envisaged getting one of those industrial units that has a large warehouse at ground level and a mezzanine office / apartment area that way I could viewing windows from  the apartment
 
How does the idea sit with council zoning rules ?
 
Cheers
 
PB


Hey Peter,
It's an interesting 1 re: zones because it's actually in a a residential street. So living there won't be an issue, the zoning actually prevents a developer building more than 2 townhouses on the block and going higher than 2 floors.
So the good thing about it is that it's appeal to a developer is diminished as a result. It actually passed in at auction the other day.

The good thing about the place is it has a small courtyard area at the back, which could be a BBQ / outdoor area. But at the front the loading dock is actually a later ad on. If you look at the first photo in post.
http://www.viczcar.c...emand/?p=180725

You can see there is a big sliding door, which was the original door. In front of the loading dock is a small concrete area which could be fenced off (from the footpath) and turned into a garden area and if the loading dock was removed at some point could also make quite a decent size yard area. Albeit with driveway through it.

So unlike a lot of warehouses where there is no space for a yard or garden this could be adopted to work in that sense.

Also I would probably end up building a second floor which would allow the lower level to be the workshop area and upstairs the living quarters. It's such a large space if you had the money you could probably build a couple of dwellings on the second floor (council approval and all that) and lease the others out also.

But yeah money is no object / dreaming etc.. ;).

My grandparents owned a large factory on City Rd in Melbourne, it would be worth an absolute fortune now. But the place always captured my imagination as a child, it even had a bomb shelter hidden up the back, my mum wouldn't tell me where it was. Said it was dangerous, but I managed to find it 1 day under a large metal sheet. I wonder if it's still there.
It's now a car showroom, but I always think about the possibilities of the old place. I'd say that's where my fascination for old warehouses began. Then as a 16-17 year old kid I was doing some work for my uncle who is a builder / bricklayer and we were working in Richmond. The place was an old small factory which from the outside looked like a run down building.

However inside was amazing and we were building walls etc.. A pretty cool little pad. I recall turning on the TV a couple of years later and I think it was "The Secret Life of Us" or some other Australian drama and they were using the same place to film. I also think it might be featured in 1 of the scenes from Cracker Jack, but I'd have to watch it again.

Ever since I visited this place I've daydreamed about being a billionaire so that I can do the same in Sydney. A man has to have dreams right...?

http://remise.de/Cla...ish-summary.php


You got me looking at the Glebe/Rozelle tram shed. It's being turned into apartments + a foodie mecca sort of thing. But it would be awesome as a car museum like that 1 in Berlin.

Just wanted to chime in and say Very cool. Convincing a misses to live in a shed is incredibly cool. You'll need a big glass wall on your main living area so you can look out over your toys though


Funny enough that was the easy part, not sure how the finance will work at this stage and or if I can make the whole thing work. A big challenge is that a lot of place I've found have had stiff competition and obscene prices.

#15 TomC18

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Posted 23 July 2016 - 02:16 PM

The biggest problem with warehouses is finding one in a decent location and getting in before the developers who cut them up into small chunks.  So the restrictive resi zoning may have saved you from much higher cost. Melbourne resi prices are unlikely to come down any time soon.  Low interest rates,100,000 people a year moving here, and the gap to Sydney prices are going to keep them high. 

 

I had  a 400+m2 Victorian warehouse in Chapel Street above a couple of shops for 10 years after 5 of looking and 2 of renovating, not great parking, but the main living area was 26m x 6.5m.  My ex still enjoys it!  So if you find something viable you should grab it, there aren't that many good options around!

 

good luck!



#16 gav240z

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Posted 24 July 2016 - 01:37 AM

My ex still enjoys it!  So if you find something viable you should grab it, there aren't that many good options around!

 

good luck!

 

Thanks, sounds like you got the raw end of the deal on that 1.

 

A bit over a year and a half ago I was looking at this 1.

http://www.domain.co...r-east-vic-3033

 

In hindsight I probably should have gone for it, but the area was a bit too industrial still. But if you're willing to put up with the noise and isolation (non-weekdays) it's probably not a bad thing.



#17 nizm0zed

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Posted 24 July 2016 - 02:24 PM

So I've started to think about ways to buy a place to live but have something flexible enough that will help pay the mortgage. I've been saving money to buy a house for 8+ years now (even when I was living in Ireland). I still think we are experiencing a massive bubble, and a crash HAS to come at some point.

I agree, the bubble is going to burst soon, dont know when however. It seems every 'expert' has a different answer...
Im looking at locking in my mortgage at a fixed rate over the next 5 years (the missus wants to lock over 3) because I personally beleive the bubble will burst within the next 3 years some time.
If youve been saving this long, why not wait for the crash and buy then?



#18 gav240z

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Posted 24 July 2016 - 04:07 PM

If you've been saving this long, why not wait for the crash and buy then?

 

Because I've been doing that for the last 6 years, in 2010 I thought prices were extreme.

 

I know as soon as a I buy something the whole thing is going to turn to custard, but I'm worried that it could keep going for another 10 years. Then what?

 

There is a lot I could say about the subject, but basically this countries constant sell out to foreign investors (with questionable income sources), negative gearing, half capital gains tax discount, super low interest rates, population ponzi, religious belief in property only goes up etc.. It's hard to see it abating in the short term.

 

Hence the idea behind the warehouse and storage of vehicles as a form of income. Of course when things go pear shaped classic vehicle storage demand may decline or the amount people are willing to pay.

 

It's hard to see how things are going to pan out going forward, the Euro zone is looking unstable (I've got money tied up in an Irish bank account), we could end up with a Trump president and we in Australia have record household debt to GDP ratio.

 

If the Australian government starts printing money the $AUD could drop to 40 cent vs $USD etc..

 

I reckon hedging and going into Gold is probably not a bad idea at this stage in the game with Japan trying negative interest rates and finding the YEN going higher not down. I could also buy a few more S30Z's, they only go up in value right?

 

End of the day everyone needs shelter, I should have jumped in 4 years ago. But the Irish bubble pop was still fresh on my mind and I was convinced it would happen here sooner.

 

Ah well....



#19 chris240

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Posted 24 July 2016 - 05:23 PM

Gavin, I work for a large-ish commercial property development company and one thing Ive learnt is you can look at figures, yields, returns , wales etc, till the cows come home, (hehe contradicts my previous email) but the best 3 rules are , aquisition, acquisition acquistion.

#20 CBR Jeff

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Posted 24 July 2016 - 05:42 PM

Gav as you said in a recent post just do it!!!
If you plan to live in it at any stage then it changes all of the calculations. But above all if you can afford it, you want it and it fits into your plans "just do it".
Jeff

Edited by CBR Jeff, 24 July 2016 - 05:43 PM.





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