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.