A strata storage unit bought as an investment is commercial property, so most home loan lenders will not finance one on its own. Buyers usually use a commercial loan, often with a larger deposit, or draw on equity in their home. Lenders look at the unit’s value, the building’s management, and how much rent or owner use it supports.

Storage unit investment at a glance
Item What to expect
Type of property Commercial strata
Finance Commercial loan or equity from another property
Deposit Usually larger than for residential
Income Rent from a tenant or a managed pool, or owner use
Resale A narrower buyer market than homes

What kinds of storage units are there?

Two main kinds. Strata storage units are individually titled sheds or garages in a complex, bought by investors or by tradies and small businesses for their own use. Units in a managed facility are sometimes sold with a management agreement that pools the rent. They are financed differently, and the second can be harder to fund.

Why don’t home lenders fund them?

A storage unit is not a dwelling, so it falls outside residential lending policies. Commercial lenders will consider it, but small commercial loans can have higher rates and fees, and some lenders set a minimum loan size that a small unit does not reach. That is why many buyers use equity in their home through a separate split instead.

How do you use home equity for a storage unit?

If you have equity in your home, a lender can lend against it to fund the unit, with the loan secured on the home. The rate is a home loan rate, which is usually lower than a commercial rate. Keep it in a separate split so the purpose of the borrowing is clear, especially if the unit is an investment and the interest may be deductible. The guide to using equity explains how.

What should you check before buying?

  • The strata levies and what they cover.
  • Access hours, security and the building’s condition.
  • Rent achieved for similar units and how long they take to lease.
  • Any management agreement and its exit terms.
  • Zoning and permitted uses if you plan to run a business from it.

Can a business or an SMSF buy one?

A business can buy its own storage or workshop space and lease it, and a self managed super fund can still borrow to buy business real property after 10 August 2026, if the unit is used wholly and exclusively in a business. Related party rules are strict, so get SMSF advice first. The warehouse and industrial property loans page covers larger industrial buildings.

A worked example

A tradie in Western Sydney wants a storage unit in a strata complex near his home to keep tools and materials. A commercial lender quotes a higher rate and fees on the small loan. Instead he uses a split against his home, keeping the unit’s borrowing separate. Because he uses the unit for his business, his accountant advises on how the interest is treated.

Questions people ask

Can I get a loan for a storage unit?

Usually a commercial loan or equity from another property. Most home loans cannot be used for a storage unit alone.

Is a storage unit a good investment?

It can have a low entry price and simple upkeep, but resale is narrower than for homes. Look at rent, vacancy and levies.

Do storage units have strata levies?

Strata units do. Check what they cover and whether a special levy is planned.

How do you invest in a storage unit?

Buy a strata-titled unit in a managed self-storage facility, either to lease out or to use yourself. Check the strata scheme, the management agreement and recent resales, then arrange a commercial loan or use equity in your home.

Charles Touma works out whether a commercial loan or home equity is the better way to fund a storage unit. A free 30-minute call covers it. General information only, not credit, tax or financial advice; every loan is subject to the lender’s assessment.

Sources: ATO, changes to SMSF borrowing from 10 August 2026; ASIC, Regulatory Guide 209, checked 18 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.