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gav240z

Classic Car Storage / Demand?

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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.

Banks aren't silly and they hate losing money.

I reckon that if a 5 year fixed rate mortgage is lower than the current variable rate, interest rates aren't going up any time soon.

Banks have a pretty good handle on these things.

 

I hope I'm right cause I'm in a hole lot of strife otherwise, along with everyone I guess.

Edited by Cozza

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Hey Gav

 

I currently have a "roller" stored at the Car Kennel in Melbourne, cost is $200 plus gst per month, paid 3 months in advance.  Additional charges for loading / unloading but at least they seem to have the resources to do it appropriately.  Also seems to have contacts with towies (as i guess you would in that game) if and when cars need moving...

 

Probably no new information but supports the numbers you initially indicated.

 

Good luck, as others have said, I don't suspect there will be any better time than today.

 

David 

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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.

Another word of caution and not trying to rain on your entrepreneurial parade but the roof looks like asbestos cement which can be a real liability and changing a building's occupancy I.e. Warehouse to residential in part or full can trigger a Development Approval which can result in retrospective upgrade of the current BCA requirements - disabled access, fire and life safety, fire resistive construction, blah, blah, blah! Wouldn't hurt to talk to an architect or a building certifier before you sign on the line. Mike

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Another word of caution and not trying to rain on your entrepreneurial parade but the roof looks like asbestos cement which can be a real liability and changing a building's occupancy I.e. Warehouse to residential in part or full can trigger a Development Approval which can result in retrospective upgrade of the current BCA requirements - disabled access, fire and life safety, fire resistive construction, blah, blah, blah! Wouldn't hurt to talk to an architect or a building certifier before you sign on the line. Mike

 

Yes the roof is Asbestos cement (not great, I know), development approval is not something I thought about re: change of occupancy. Good point.

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He's gone suspiciuosly quiet...

 

Still doing research and talking with a Mortgage broker that's all.

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^^^^^^^ What dat240z said 

I've been told the bubble will burst, ever since I bought my first house over 16 years ago. 

The best time to buy is yesterday!

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Is this the type of scene your looking for. Your other half may be content to live in a industrial estate  for a while . But that will end and if you plan to have a family a shed on its own wont cut it. Things are never as cheap as they are right now . Prices can stagnate or Plato for a number of years (happened in the mid 90'S) with very little movement up or down. Trick is to time the end of that period as they will climb fast just after it . GST triggered the last big move at the turn of the century.  .    

post-103723-0-47786700-1469492062_thumb.jpg

Edited by Bonkers

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Is this the type of scene your looking for. Your other half may be content to live in a industrial estate  for a while . But that will end and if you plan to have a family a shed on its own wont cut it. Things are never as cheap as they are right now . Prices can stagnate or Plato for a number of years (happened in the mid 90'S) with very little movement up or down. Trick is to time the end of that period as they will climb fast just after it . GST triggered the last big move at the turn of the century.  .    

 

All good points and all things I've considered. The way I see it at the moment is that where I live and where I'm invested may be 2 different things. Therefore if family means I cannot continue to live in the warehouse, I may need to move out and rent somewhere else while renting the warehouse out. Of course having a home / place to live for a family is good for stability, but I think my generation (Gen Y) isn't going to have the same opportunities as previous generations and we can't assume that our lives with follow the same trajectory.

 

Renting in this country sucks, mainly because the law is overly favorable to land holders and discriminates against tenants, if there is no significant correction and the current price path continues a majority of voters will be renting. Which means the laws will inevitably change to protect them more and make it less of the shit end of the stick.

 

So I guess that's kind of the way I'm looking at it. The thing about a warehouse is that it has multiple uses and therefore more opportunities for income generation. Of course that can all be blown away by a recession or over-supply in the area etc..

 

What frightens me is religious belief in real estate this country has, the never goes down mentality. Corrections do happen, but Australia has managed to stay out of 1 for the past 25 or so years. I think that's made a lot of people complacent. So whatever I do, I am trying to take worse case scenario into account.

 

Just ask the folks in Western Australia or the Northern Territory how the property markets there are doing right now.

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Just ask the folks in Western Australia or the Northern Territory how the property markets there are doing right now.

Which were ridiculously over inflated due to the mining boom.......... They are now correcting.

 

 

Renting in this country sucks, mainly because the law is overly favorable to land holders and discriminates against tenants, if there is no significant correction and the current price path continues a majority of voters will be renting. Which means the laws will inevitably change to protect them more and make it less of the shit end of the stick.

As a landlord, that's not the way I see it.

It's like watching the footy.

You see penalties the umpires miss or pay against your team. 

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the bubble can only burst if supply overtakes demand, but in Sydney we're a long way from that or if interest rates go crazy. 1600 people move to Sydney each week, not sure how many leave. We've now hit 5 million for a city that can really only handle 4 million. The rate of unit/apartment development in Sydney is the real worry. If they were a cheaper alternative to houses, as once they were, then I wouldn't curse every time I saw a new block going up. But the average unit price isn't that far behind the average house price.

I see Sydney with an oversupply of units. Some suburbs are worse than others and people will be unable to sell when times get tough.

 

back on topic..............a bloke I used to work with his father lives in a factory unit with his 10+ cars.

 

You've obviously done a lot of research. Everything has risks, but nothing is certain. One thing that is is that prices will continue to go up and the longer you wait the worse your financial position becomes or someone snaps the property up from under your nose.

Imagine if you had bought 8 years ago or 5 years ago?

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Yeah I keep telling my mum what a mistake it was to sell the factory when they sold the business back in 94/95? (I think it was) in Melbourne. I was looking for photos of the inside the other day and found that Domain had some here.

 

http://www.domain.com.au/property-profile/412-430-city-road-southbank-vic-3006

 

My mum tells me the business itself didn't bring much money after years of operating, but the building itself was its greatest asset.

 

What a great old warehouse, of course it was a bit more rundown than it looks now in the photos when they owned it.

 

I do wonder if it still has the bomb shelter in there a relic from the second world war, my grandparents told me they were worried about the Japanese bombing Melbourne. Since they had got to Darwin already. Chances are it got filled in by now.

 

RE: The warehouse in question I'm still looking into a few things, my aunt is an architect and my uncle a builder so getting their opinions on a few things also. I'm told it might be hard to find a tenant in the area, not much demand apparently.

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Bad move to sell in City Road, probably worth $20m now!  Especially in 94/945 coming off the big downturn in 92, we had a few clients sold up in that area

 

Where is the new place?

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Bad move to sell in City Road, probably worth $20m now!  Especially in 94/945 coming off the big downturn in 92, we had a few clients sold up in that area

 

Where is the new place?

 

New place I'm looking at is Moorabbin, Cheltenham, Sandringham area. Not inner city.

 

They sold the business as my grandparents could no longer run it I'm afraid.

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Hey Gav, the way I see it if you're just storing a car somewhere and can't work on it, it may as well be a few hours away so it's as cheap as possible. There are exceptions to this, but I figure those people generally have enough money to store the car on their own property, or that many cars so money also isn't that much of an issue. Unless you're talking really close to a bunch of highrise apartments which might be planned for southland?

 

There's a few motorbike places around doing a general 'shared workshop' space, obviously easier for them due to the size of a dismantled bike vs a dismantled car. So not sure how a car version would go.

ie http://www.kustomkommune.com.au/ http://www.benzinagarage.com.au/and shared woodwork / lasercutter / cnc places like http://www.normwarehouse.com.au/ https://www.spacetankstudio.com.au/ 

 

I dream of buying a warehouse in a nearby residential street, but realistically it seems like it'd be cheaper for me to buy a house with around double the land size and just have a large garage - likely more convenient with kids etc anyway as can "watch them"

 

I agree the market has to crash at some point, but I can't see that crash bringing prices back to where they were 10 years ago. I'm guessing in a crash a solely commercial property would be hurt more, as businesses shut down before people live on the street? On the plus though commercial properties normally have longer leases?

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Lucky it doesn't rain much in Melbourne,,,,

Brisbane, on the other hand,,,,

( my old 2 level warehouse, converted into coffee shop, offices, and retail, in background is Brisbane River, at Milton, 2011 floods!)

post-101049-0-94458300-1470182988_thumb.jpeg

post-101049-0-68972200-1470183033_thumb.jpeg

Edited by dat2kman

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None of us can predict the future so if the figures makes sense and it appeals to you and yours then do it Gav, seriously.

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I was thinking about the Gosford Car Museum (and what it apparently does for Z values)

 

Are there 4-5 high quality Zeds that people would pay $220 a month to store in Melbourne in a small Jap focused car museum?  Opened only by arrangement, or maybe Saturdays?

 

Would look at getting 10-12  Nissan/Datsun cars to display in an older style warehouse with a workshop out back...

 

Any takers?

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I was thinking about the Gosford Car Museum (and what it apparently does for Z values)

 

Are there 4-5 high quality Zeds that people would pay $220 a month to store in Melbourne in a small Jap focused car museum?  Opened only by arrangement, or maybe Saturdays?

 

Would look at getting 10-12  Nissan/Datsun cars to display in an older style warehouse with a workshop out back...

 

Any takers?

 

I thought about this kind of thing also, but perhaps a range of classic Japanese cars people could see. But I kind of think it's unfair to charge people to store their cars there especially if you're charging folks entry fee's?

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True but I don't really think people will pay anything material to see a few cars.  Even the Fox collection doesn't pay for itself on entry fees and is pretty cheap

 

So it would be more for the fun of it ... eg informal club rooms? not sure it's a business model!  

 

Although Fox did make it tax deductible, so maybe there is a way.  May need a bit of further thought...

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I kind of think it's unfair to charge people to store their cars there especially if you're charging folks entry fee's?

Unless the owner was looking for some storage space anyway. Or, you can offer other services like, hoist and tool usage that the average tinkerer doesn't normally have access too.

 

Insurance for a museum would be interesting. Imagine If something went wrong.

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Even a hoist service by itself with a bench or two should have takers, apartment living city people wanting to work on their cars but offering loose tools would be too hard to manage I think. Maybe display some of your Z odds and ends too Gav, could be the start of a part time business.

 

Importantly, are we there yet?

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Place I was looking at is under offer right now (not me). In the interim I'm still looking around to see what's out there.

 

I found a place with a large workshop out the back but they are asking $1.2M+ which is just too much - even with a large size deposit.

 

The reason it's so expensive is that they are trying to sell 3 properties next to each other or each individually and it would appeal to a developer to put multiple townhouses on those blocks...

 

The search continues..

 

I still love the Warehouse I was looking at... sadly beaten to the punch.

 

Even a hoist service by itself with a bench or two should have takers, apartment living city people wanting to work on their cars but offering loose tools would be too hard to manage I think. Maybe display some of your Z odds and ends too Gav, could be the start of a part time business.

 

Importantly, are we there yet?

 

Yeah I've thought about it, I'd love the opportunity myself but I recall a similar service in Dublin which I used once or twice they shut down pretty quickly due to low adoption I think. Maybe different in Australia as a car loving nation?

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you need to look at liability insurance when you are talking about hoist, bench, workspaces etc....

 

too much of a headache for no return.

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