When it comes to diversifying, the proportion allocated to each type of asset varies depending on the type of profile. However, it is recommended to maintain between 70% and 50% fixed income assets.
Keep a Diversified investment portfolio is the strategy recommended by specialists. The same Warren Buffetta luxury example when talking about large investors, recommends minimizing risk by deconcentrating investment and maintaining assets in different industries and markets, especially moderate or conservative investors.
As Buffett said in his 1987 letter to Berkshire Hathaway shareholders, “Never invest in a business you can’t understand”, especially if you don’t have previous experience. The recommendation is always to go for the markets with the lowest risk, and that do not require exhaustive knowledge. Therefore, the self-storage industry is a luxury option, which continues to grow and increase its volume of operations around the world. The United States is the main market, with US$39.5 billion annually in income.
He self-storage It has many advantages over other real estate options. On the one hand, the cost; Investing in storage requires a much smaller budget than purchasing a home or premises. On the other hand, it does not require maintenance or management by the owner. Additionally, from the subdivision of the units, known as “Condo Storage”, the investor can obtain a property title for each storage unit. This concept developed by BAS Storage imitates the garage system in Argentina, transforming the possibilities of Latin investors to own property in the United States.
When it comes to diversifying, the proportion allocated to each type of asset varies depending on the type of profile. However, It is recommended to maintain between 70% and 50% of assets with fixed income for a conservative to moderate portfolio with a much lower risk. Self-storage offers a fixed income in dollars of up to 8%, with an annual revaluation of 4% over 5 years, making it an attractive option for integrating a varied and safe portfolio.
The demand for storage in the state of Florida has increased due to the high population mobility, which continues to grow. We are opening our sixth building, which has more than 300 storage units, already in pre-sale. The occupancy of the units throughout the country exceeds 92%, even with a surface area of 1.6 billion m2 dedicated to industry, so the risk of vacancy is practically zero.
According to research by the Wall Street Journal, self-storage customers are willing to pay more for the storage of their belongings in the long term than the value of the belongings themselves. All signs indicate that this trend will continue over time. Therefore, it is the bet of smart investors, who can start investing from US$25,000.
Entrepreneur, economist and CEO of BAS Storage
Source: Ambito
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