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. A Sterling Woodrow Review can help to resolve this.

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?