Student accommodation investment UK is a major part of the UK property investment sector. It is one of the highest revenue generating sector of the country’s property sector.
Student accommodation investment UK can be done in two ways: residential property and purpose-built student accommodation. Both of these student accommodation investment UK options provide great opportunities to invest in student property.
A leading asset class
Student accommodation investment UK has become one of the leading asset classes among wealthy investors. With student numbers rising year on year, developers seek to catch up with an undersupplied market, turning student accommodation investment UK into a highly profitable venture. Student accommodation investment UK is an attractive option as it combines high yields and a strong market.
Growing student numbers
As the number of students at universities across the UK continues to grow each year, the number of students looking for new housing opportunities, continues to rise. Student property can often achieve up to £650 per week as rent which makes it a viable investment option since the price for purchasing the property is relatively low.
Student accommodation investment UK factors
For a profitable student accommodation investment UK, it is necessary to consider the location, the type of accommodation, the type of tenant and potential rental yields before deciding to invest. When choosing the location for the student accommodation investment UK, it is necessary to consider the type of students which will be looking for a residence at the location. In order to stand out from other rivals, it is necessary to take the early lead by considering all the aspects of the student accommodation investment UK before proceeding with the investment. An initial misplaced decision in terms of choosing the location, type of investment and the potential rental yield may make it difficult to stay ahead of the competitors, while the appropriate steps will enable you to begin on a winning note. For this, it is necessary to know the area before making the student accommodation investment UK.
Since property investment may be a big decision for some, offering a great location, accommodation and price will enhance the reputation of the investor and help to provide them with tenants round the year.
Student accommodation investment UK ways
Student accommodation investment UK can be done in a number of ways. The most popular way to invest in student accommodation property is to purchase a property and rent it out to students via a buy-to-let mortgage. For purpose built student property, it is expected that the investor will buy off-plan by providing a non-refundable deposit and half of the cost on exchange of the contracts, with the remainder of the fee set to be paid on completion. As there may be issues such as risks of non-completion of the property as well as financial troubles for the developer, research should be done into developers before committing any student accommodation investment UK.
Another way to invest in UK student property accommodation is to buy shares in such a student property with income made in proportion to the shares held by the investor. This is a reliable way for those investors who are looking to invest in the student accommodation property sector but may not be able to afford to purchase a property in full.
Choosing a student accommodation investment UK partner
This is an option for those looking to invest in student accommodation property but do not have the necessary skills and experience. On the other hand, the potential partner for such an investment may possess knowledge about the sector and have the required expertise. Such a partnership works two ways and the unique advantages of the partners are mutually complimentary. Therefore, it makes sense to choose an investment partner that specialises in student accommodation because their understanding of demand is useful when finding property that aligns with the investor’s own personal objectives as an investor.
Student accommodation investment UK advantages
High demand: Thriving student population in UK cities offers a great opportunity for student accommodation investment UK as all the students need a place to live.
High rental yields: Student accommodation property sector offers a lot of potential to investors and the option of renting a single room to more than one tenant further enhances the potential as investors can let a room to more than one student tenant. Under this option, students share part of a property with other students, maximising the income for the investor. This option is especially useful for owners of smaller properties.
Less payment issues: There is less chance of issues with the rental payment as it is usually the parents who pay the rent for the students which means the investor is usually paid on time. This is a distinct advantage in terms of student accommodation investment UK which makes it a lucrative option.
Less complaints: Students tend to be less demanding as compared to their older counterparts which means the investor should expect less complaints than in case of families.
Student accommodation investment UK places
There are a number of factors that make student property a good choice for students. A good idea for making the choice is to think from the perspective of a student.
Proximity to educational institutions
Investing in a student accommodation property located near a place of education such as a college or university is fairly obvious as most students will prefer to be near where they study. It not only saves them on financial resources as they have to travel less but saves on vital time as well. In fact, the nearer the student property is to the place of education, the better.
Access to public transportation
A property that is close to some good transport links is often favourable to students as students tend to travel. A location near communication hubs such as bus and train stations should be explored.
While any student accommodation investment UK may generate significant yields, the revenue may be much higher if many, if not all, factors are favourable to the investment.
Therefore, there are a number of reasons to invest in UK student accommodation property and the investor should decide after considering all the related aspects of the investment so as to turn the investment in to a successful venture over the long term.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.