Quick Tips You Should Use When You Buy Student Accommodation in the UK

Why Buy Student Accommodation In The UK For Investment Purposes?

More and more people are starting to tap into the lucrative student accommodation property market in the UK. Many people are actually buying such properties to invest for their retirement as an alternative to traditional private pensions. This is because income from monthly rent on student accommodation can exceed the return rate on low risk, managed stocks and shares investment portfolios.

One great thing about owning a student property is that you are almost guaranteed to fill all spaces with tenants and the chances of tenants occurring rent arrears is very low. This is explained by the fact that all students in the UK are entitled to maintenance loans from the government to help cover their living costs while they are at university. In addition, when renting to students, you can request that rent is paid in full before a university term begins. Opting to buy student accommodation really is one of the safest property investment strategies.

Keep in mind that while you should never have any problems collecting rent form students, you may have some property maintenance issues. You might want to outsource the letting and maintenance to a specialist property management company that has experience dealing with students. These companies charge students large deposits which they don’t get back unless they leave a property in the same condition it was in when they first arrived to collect the keys.

There are dozens of university cities in the UK, so it should not take you long to find some suitable student accommodation investment properties. Perhaps one of the best ways to make a great return on your investment is to convert large town houses into specialized student accommodation. You can often convert a large townhouse into 8 or 9 studios, allowing you to maximize your monthly rental income. Just make sure you secure the relevant planning permission before you start work.

If you are not sure where to start when it comes to buying student accommodation as a long-term investment, you should know that there are lots of great online platforms where you can connect with existing investors and learn some top tips and tricks from the industry. You can also use the web to advertise rooms to new and returning students.

Many investors have discovered that they can make more money by renting to international students, so you might want to consider advertising your property abroad to students who are planning to come to the UK to complete their degrees. That said, you need to ensure they have funds to cover their rent before they arrive as students outside the EU won’t have access to government-backed loans and grants to cover their accommodation costs. This means renting to international students can be a slightly more high risk strategy.

On a final note, many people who buy student accommodation worry about finding tenants during the summer months, but this is generally not a problem. In fact, many property owners make extra money during the summer months by advertising their properties on short-term holiday letting websites. In peak seasons, self-catering properties in popular UK tourist cities can bring in more than £1000 a week.

What Purpose Built Student Accommodation REALLY Is

purpose built student accommodation

Crowded dorm rooms, noisy study areas, unattractive cafeteria food – these are just some of the reasons that students are seeking Purpose Built Student Accommodation, or PBSA. The demand for living quarters for students has been rising consistently in the last 15 years. Unfortunately most universities have done little or nothing to improve dormitory living conditions. Students, especially those from other countries, have to pay extravagant rates to live in quarters that are less than satisfactory.

Purpose Built Student Accommodation is their alternative. This is housing that is built deliberately to house students. Real estate investors discovered some time ago that this is a lucrative sector and have been cashing in ever since. The demand for beds for students has been rising steadily – it is now at 2.3 students per bed per year. PBSA is the best way to make use of this demand – investors buy into properties that house students and they enjoy a steady income stream for years to come.

What are the Advantages of Investing in Purpose Built Student Accommodation?

 

•    In a real estate environment of low interest rates this happens to be the most lucrative place to be right now. Statistics show that investors are able to make more in this niche than they do in commercial and even residential real estate.

•    The student accommodation market in the UK has always been undersupplied which means that any investor can take advantage of the low supply and high demand. All student accommodation in the UK has students waiting to take up beds as soon as they become available. Compare this to residential and commercial real estate where investors sometimes have to wait months to fill vacancies.

•    Universities are very much in favour of this kind of housing. Many of them are willing to acknowledge that they do not provide sufficient living quarters for their students and they are willing to cooperate with PBSA investors. As they present students with information about dormitories they also give them details about PBSA’s that are within their college’s commute.

•    The investment is straightforward – once an investor buys into a PBSA they can sit back and wait for their returns to be forwarded to them every month or three month through the bank of their choice.

•    You don’t have to worry about managing your investment – one of the biggest headaches that real estate investors have to worry about is making sure that their property is properly managed. They have to ensure that they get the right tenants, that their property is nit misused and that they have occupancy at all times. Purpose Built Student Accommodation takes care of all these things – all you need to do is buy a number of units through an investment company and they do the rest. The cost of managing the property is shared by all investors which makes for greater profit margins.

If you are thinking of investing in real estate that will give you great returns and continue to do so for a long time to come there is no better place than Purpose Built Student Accommodation.

Is Student Accommodation Investment UK Just a Trend or a Lucrative Investment Model?

Many investors have thought of investing in student accommodation in UK sometime. While it may sound very attractive with low entry costs and high rental yields, this niche investment also has its fair share of drawbacks that must be taken into account.

Do you like the sound of income returns above average? What happens with a positive investment of cash flow? Or better yet, a low purchase price? It sounds great, does not it? These are just some of the benefits that are often said of investing in student accommodation. But unfortunately, in our experience, it is usually where the good news stops.

Investing in student accommodation in UK has its fair share of the disadvantages that must be carefully weighed against the potential benefits before embarking on this route.

Higher costs

Student tenants often require additional security, life supplies (cutlery, sheets, etc.) and full furniture. In addition to this, the greater wear of the rent to the students can mean a more frequent replacement of furniture and articles for the home and an increase in the maintenance costs. Property management fees are also more expensive due to the need to manage multiple individual tenants (in cases where many people share a property).

Increase in turnover and vacancies

Be prepared to accept a constant rotation of short-term leases and potentially have the property vacant during the year-end vacation period when many foreign students return home. Some tenants may continue to rent during this period, but tenant conflicts within the unique property and nostalgia are common problems that will see a greater turnover of tenants independently.

Additional complications

Multiple tenants in a property mean multiple leases that are quite annoying in and of themselves. In addition, student tenants are notoriously late in paying rent, so tenants are expected to do so regularly. These tenants also cannot take care of the property or say to a young couple or family, so maintenance and cleaning will be a major problem. You should also investigate if a normal insurance policy will be sufficient and some tips may have several requirements for properties with several individual leases. You may also have difficulty getting the right loan.

Particular student accommodations to avoid most are specially designed ones, many of which are sold off-plan by developers or sold to investors as integral “packages” where everything is taken care of for you.

In general, there are people on both sides of the fence when discussing whether buying student accommodation is a good investment. While it has some advantages and may work well for some investors, in general, this niche investment is risky and often does not pay off in the long term, especially for those who invest in specially designed student accommodation.

Overcome Your Fears of Buying Student Accommodation Investment by Reading This

Student AccomodationOvercome your fears of buying student accommodation investment by reading this because it will be a good thing for you to do it. We are going to show you what is going on in the student housing market in London right away, so you can know more.

Portfolio Expansion

If you are thinking about expanding your investment to the student housing market, think again because we have good news for you. Greystar JV will expand its portfolio in the student housing field in London, and they are working hard to realize this vision in the future.

What about Greystar?

Well, this company has $60 million in revenue and around 10,000 employees. We are talking about a successful firm that has been around for decades, and that speaks for itself about the power of this company. So, we are talking about strong, successful companies investing big money in the student housing field, and you should be doing the same if you want to make money.

Allianz Real Estate and PSP Investments are going to invest heavily in London in the student housing market, and that is another good news for you too. These companies will invest heavily in London to add 10,000 beds to the student housing market.

https://www.savethestudent.org/make-money/how-where-to-invest-money.html

London

You have to understand that London is an excellent place for students to be there and that is just part of the good things. You can do invest in the student housing market here and make good money right away.

Growing

This partnership is awesome because these companies plan to double the size of their portfolio in the next years, and that is great for investors like you because it means that you will truly be able to make money here if you know what you are doing. They will be working hard to acquire a lot of real estate firms and condos, so they will be truly making a killing in this market and you can do it too if you can afford it. You have to know that Greystar is truly a global leader when it comes to student real estate investments.

If you have been worried about investing in the student housing market in London, worry no more because we have told you what is going on there. Yes, should dive into these waters, yet you have to know what you are doing so you can get the ROI you want to get.

3 Secrets About Student Property for Sale That Industry Experts Don’t Want You to Know

student property for sale

Even as the commercial and residential real estate sectors continue to show dropping rates of return many investors hang on in the hope that the market will soon pick up – they haven’t thought to look into alternative investments, one of the best which is student accommodation. Student property for sale is one of the hottest items in the real estate market today only you may not know it because it remains a well kept secret. Veterans in this niche have made lots of money and rather than risk it becoming saturated they are playing their cards close to the chest. Here are just a few things they don’t want you to know about:

•    According to UCAS the number of student enrolment in UK universities continues to rise by 3% every year and all these students have to live somewhere. Universities are not equipped to house these numbers and what few dorms there are aren’t sufficient – they are crowded and they lack the facilities that modern students are looking for. Their option is purpose built student accommodation. The demand for this kind of student property for sale is high – at any one time there are more than 2 students waiting for a bed to open up.

•    This demand will not be going down any time soon. The United States is making it increasingly difficult for foreigners to work within its borders. Students would rather study in a country where they stand of getting employment and residential papers and the UK gives them this opportunity. It is expected that in the coming years the number of students seeking higher education in the U will only increase and with it the demand for Purpose Built Student Accommodation – it is a real estate investor’s dream.

•    The average rent for students in the UK has been rising with the rising demand for student’s living spaces – the average is now £143 up from £120 per week. At these rates investors are able to recoup their investments before long. Many start by buying a couple of units to test the waters but as soon as they recoup their investment and realize how lucrative this niche is they buy additional units.

So what exactly does student property for sale have that dorms in universities don’t?

https://www.moneywise.co.uk/investing/alternative-investing/guide-to-investing-student-accommodation

In the past, any accommodations that had a Wi-Fi connection and common area were considered luxurious by students. Today, with the higher rents stuents are demanding much more. Good private student accommodation is expected to have a gym, pool, storage, game rooms, a large kitchen, several bathrooms and even en-suite rooms. Students are no longer willing to live with several others in one room – many insist that the maximum number there should be in a single room is just two. This gives you a picture of just how much this kind of housing is in demand.

You are now in on the secrets about student property for sale – why not invest before everyone else finds out?