Why Property Investors Should Focus on Student Accommodations
02:10Focus on Student Accommodations
Opportunities for UK student property investment are widespread. The range of strategies and properties to choose from are quite diverse. This is why the niche is quite an ideal route for people that want to establish an investment portfolio. Yields for investment properties can even be higher if you will consider leveraging it along with a sound management strategy. When done right, it can indeed turn into a high passive income.
Students are increasing
Sure there have been increases in tuitions fees. However, more and more young people are entering further education. Record numbers of applicants have been received by UK universities. This trend is an indication that the number is only likely to rise. This creates a huge demand pool and every single one of them requires accommodation.
Universities get overcrowded
Traditionally, students would choose to reside in the university that they are studying at. The increase in demand through means that there are not enough rooms that will be available inside the campus. Many students are not likely to get a room, even the first year ones. It is also common for students in their second year and beyond to just partner up with friends so they can rent a private accommodation instead.
Recession-proof
Even with the recession, people do not really just stop going to a university. The opposite may even happen. Since these will be times when jobs will be scarce, more people are likely to consider studying a course instead. With the student accommodation being recession-proof, this is a good means for any investor to secure a property that will provide him with a steady source of income.
Purpose-built accommodations are attractive
These accommodations are built to resemble how things are like inside a university’s halls of residence. It is designed to have study areas, common rooms, as well as Wi-Fi access. The best ones are located just a walking distance from the university. It helps too when they are close to shops, night-life, and job opportunities.
Guaranteed rent
While some people may argue that students can be difficult as tenants, most of the time, they actually are good payers. Besides, there is a rent guarantee with this group of tenants- their parental guarantor whom you can call on in the event that they will default.
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