Author Topic: Is buying a storage unit a stupid idea?  (Read 3441 times)

jennifers

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Is buying a storage unit a stupid idea?
« on: March 16, 2015, 07:26:12 AM »
I live in a condo in downtown Madison, WI.  My condo is about 560 square feet. Until now I was renting a storage unit in the building for 55$ / month (mostly to store my boyfriend's furniture/books/dvds that we will be using someday when we get a house). The developer has decided to stop renting out the storage units, but is giving the option to buy one.  Having a storage unit is a $16.50 / month maintenance fee (seems like BS).  The storage unit I'm renting now is 57 square feet and costs $2,850.  I also have the option to buy a 22 square foot unit for $1,100.

1. Is having a storage unit going to make the condo much more attractive to potential buyers in the future? I may sell my condo in 2-3 years.

2. Am I being dumb for even considering this?  We could probably get by without a storage unit, but we'd have to move a lot of stuff into my parents' basement. (My parents live 1 hour away so it's not exactly convenient.)

Thanks for reading!

dadeg

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Re: Is buying a storage unit a stupid idea?
« Reply #1 on: March 16, 2015, 07:43:11 AM »
Yes, it is stupid from a frugality perspective. Sell it all on craigslist and buy it again (on craigslist.. you might even find your exact same couch!) in the future if you really need it.

"Should I pay money to keep things that nobody wants to use?"

If your couch is worth $500 (I doubt a used couch is worth $500), every year you hold that locker you are paying more than the couch is worth.

I'm a red panda

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Re: Is buying a storage unit a stupid idea?
« Reply #2 on: March 16, 2015, 07:46:44 AM »
I think most buyers will go for a condo with a storage unit.  If most in your area have them, I'd strongly consider the purchase.

Of course, if you don't plan to sell for a very long time, who cares.
« Last Edit: March 16, 2015, 09:42:19 AM by iowajes »

HenryDavid

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Re: Is buying a storage unit a stupid idea?
« Reply #3 on: March 16, 2015, 08:51:49 AM »
1. Get rid of or re-organize the stuff you are storing.
2. Rent out the storage unit to somebody else, for more than the cost it adds to your monthly fees.

When I had a downtown condo with a parking space, the rental income from the space covered my condo fees.
Another reason biking is so profitable.

lise

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Re: Is buying a storage unit a stupid idea?
« Reply #4 on: March 16, 2015, 09:02:42 AM »
1. Get rid of or re-organize the stuff you are storing.
2. Rent out the storage unit to somebody else, for more than the cost it adds to your monthly fees.

When I had a downtown condo with a parking space, the rental income from the space covered my condo fees.
Another reason biking is so profitable.

+1 !

Another Reader

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Re: Is buying a storage unit a stupid idea?
« Reply #5 on: March 16, 2015, 09:05:22 AM »
Figure out how much value a storage unit adds to your condo.  Check comparable units and buildings with and without storage.  Talk to some real estate agents that sell condos in your neighborhood and see what they think.  If the value added exceeds the cost, then it would make sense to buy the storage unit.

Whether to buy the unit has nothing to do with your use of it.  It's an investment decision. 

Beaker

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Re: Is buying a storage unit a stupid idea?
« Reply #6 on: March 16, 2015, 09:21:57 AM »
...Rent out the storage unit to somebody else, for more than the cost it adds to your monthly fees.

Huh, I'm surprised they let you do that. My HOA rules specifically disallow renting out the parking spaces.