Commercial Real Estate Agents Broker in Ontario, Canada

Self storage facilities can be a good commercial real estate property to invest in, as there is often strong demand for self storage space due to the growing trend of downsizing and the increasing popularity of online shopping. Here are a few factors to consider when evaluating the potential of a self storage facility as an investment:

1. Location: Self storage facilities located in areas with high population density or high levels of household income tend to perform well.
2. Demand: A self storage facility in an area with a high demand for storage space is likely to be a good investment.
3. Size and capacity: Larger self storage facilities with a high capacity for units tend to generate more revenue and may be a good investment.
4. Age and condition: Self storage facilities that are well-maintained and relatively new tend to perform better and may be a good investment.

It's important to carefully evaluate these and other factors when considering a self storage facility as a commercial real estate investment. It may also be helpful to consult with a real estate professional who has experience with self storage investments.

The loan to value ratio for self storage facilities can vary, but it is generally in the range of 30/70 to 45/55. This may change from year to year depending on the lender's risk appetite and strategy. However, self storage facilities are generally seen as a safer investment compared to other types of real estate, and lenders are starting to recognize this.

There are several factors that can affect the loan to value ratio for self storage facilities in Ontario, including the investor's previous experience with self storage, their relationship with the lender, the location and assessment value of the property, the cap rate at which the facility was purchased, and the facility's financial performance over the past few years.

If you have any questions about self storage investment or financing, please don't hesitate to contact us at info@invsty.com.

The decision of whether to invest in commercial or residential real estate will depend on your individual goals, risk tolerance, and financial situation. Here are a few factors to consider when deciding whether to invest in a commercial or residential property:

1. Investment goals: Consider what you hope to achieve with your investment. Are you looking for steady, predictable income from rent, or are you looking for appreciation potential? Different property types may be better suited to different investment goals.
2. Risk tolerance: Commercial real estate investments can be more complex and may involve higher risk than residential investments. Consider your risk tolerance and whether you are comfortable with a potentially higher level of risk.
3. Financing: Financing may be more difficult to obtain for commercial real estate investments compared to residential properties. Consider whether you have the financial resources and credit history to secure financing for a commercial property.
4. Management: Commercial properties often require more time and effort to manage than residential properties, as they may have more tenants and may require more frequent maintenance and repairs. Consider whether you have the time and resources to effectively manage a commercial property.

Ultimately, the decision of whether to invest in a commercial or residential property will depend on your individual circumstances and goals. It may be helpful to consult with a financial or real estate professional to determine the best investment strategy for you.