Investing in Storage: My New Shipping Container Property
In a recent video update, property investor Hans shares his exciting journey of acquiring a new investment property in Bingen, located in southern Germany. Having purchased the land for €15,000, Hans details how he plans to utilize shipping containers as storage spaces, turning this venture into a lucrative side hustle that exemplifies the potential of real estate investment.
The property spans approximately 760 square meters, making it ample enough for his intended use. Upon acquiring the land, Hans meticulously planned the layout to comply with local construction laws. One key requirement was maintaining a minimum distance of 3 meters from neighboring properties, a challenge that he navigated carefully to optimize the space available for the shipping containers.
Through thoughtful design, he calculated that he could fit around 10 to 11 standard 20-foot shipping containers on the lot while reserving room for smaller aluminum containers as well.
The subsequent steps involved ordering and delivering the shipping containers, a process that was completed with the assistance of a crane. Hans received a mix of new and used containers, with costs ranging from €600 for the cheapest used containers to about €1,000 for others. After some minor renovations to the interiors of the used containers, he was ready to start renting them out. The video showcases the transformation of the property and the various stages of container delivery.
As of now, Hans has set up 10 standard shipping containers, each measuring 20 feet in length and 2.45 meters in width. He plans to expand the operation further by adding smaller containers along the side and potentially clearing some of the overgrown bushes to maximize vehicle access to the back of the property.
Rental Strategy and Financials
Rental pricing is another focal point in Hans's plan. Initially, he has set the rental rate for the containers at €100 per month, which he deems competitive for his target market. His strategy includes a gradual increase in prices over time, especially for the newer black containers, which may rise to around €120 per month.
Currently, he has successfully rented out all of his containers, which contributes more than the €700 monthly costs associated with his bank loan repayment. This security sets the stage for a profitable investment, as Hans anticipates that as more containers are added, his rental income will only increase.
Looking Ahead
With an attractive financing rate of 3%, higher than the standard 2% for residential loan products, Hans estimates that after ten years, the property will be nearly half paid off. This isn’t just a real estate venture; it’s becoming a model for sustainable financial growth.
According to him, with proper management and an increase in rental units, he is positioned to earn a significant profit from this storage business in the coming months and years.
Hans’s project demonstrates the potential of investing in storage solutions using shipping containers, framed within the context of a larger real estate strategy. Interested viewers are encouraged to engage with his content, subscribe to his channel, and even ask questions about starting their own storage businesses. As Hans moves forward with his investment, it becomes evident that strategic planning and opportunistic investments can yield substantial financial returns.
For those intrigued by real estate or interested in niche businesses like self-storage, following Hans’s journey could provide valuable insights into establishing a successful property investment venture.
Part 1/6:
Investing in Storage: My New Shipping Container Property
In a recent video update, property investor Hans shares his exciting journey of acquiring a new investment property in Bingen, located in southern Germany. Having purchased the land for €15,000, Hans details how he plans to utilize shipping containers as storage spaces, turning this venture into a lucrative side hustle that exemplifies the potential of real estate investment.
Property Overview
Part 2/6:
The property spans approximately 760 square meters, making it ample enough for his intended use. Upon acquiring the land, Hans meticulously planned the layout to comply with local construction laws. One key requirement was maintaining a minimum distance of 3 meters from neighboring properties, a challenge that he navigated carefully to optimize the space available for the shipping containers.
Through thoughtful design, he calculated that he could fit around 10 to 11 standard 20-foot shipping containers on the lot while reserving room for smaller aluminum containers as well.
Delivery and Setup
Part 3/6:
The subsequent steps involved ordering and delivering the shipping containers, a process that was completed with the assistance of a crane. Hans received a mix of new and used containers, with costs ranging from €600 for the cheapest used containers to about €1,000 for others. After some minor renovations to the interiors of the used containers, he was ready to start renting them out. The video showcases the transformation of the property and the various stages of container delivery.
Part 4/6:
As of now, Hans has set up 10 standard shipping containers, each measuring 20 feet in length and 2.45 meters in width. He plans to expand the operation further by adding smaller containers along the side and potentially clearing some of the overgrown bushes to maximize vehicle access to the back of the property.
Rental Strategy and Financials
Rental pricing is another focal point in Hans's plan. Initially, he has set the rental rate for the containers at €100 per month, which he deems competitive for his target market. His strategy includes a gradual increase in prices over time, especially for the newer black containers, which may rise to around €120 per month.
Part 5/6:
Currently, he has successfully rented out all of his containers, which contributes more than the €700 monthly costs associated with his bank loan repayment. This security sets the stage for a profitable investment, as Hans anticipates that as more containers are added, his rental income will only increase.
Looking Ahead
With an attractive financing rate of 3%, higher than the standard 2% for residential loan products, Hans estimates that after ten years, the property will be nearly half paid off. This isn’t just a real estate venture; it’s becoming a model for sustainable financial growth.
According to him, with proper management and an increase in rental units, he is positioned to earn a significant profit from this storage business in the coming months and years.
Conclusion
Part 6/6:
Hans’s project demonstrates the potential of investing in storage solutions using shipping containers, framed within the context of a larger real estate strategy. Interested viewers are encouraged to engage with his content, subscribe to his channel, and even ask questions about starting their own storage businesses. As Hans moves forward with his investment, it becomes evident that strategic planning and opportunistic investments can yield substantial financial returns.
For those intrigued by real estate or interested in niche businesses like self-storage, following Hans’s journey could provide valuable insights into establishing a successful property investment venture.