Learn from These Mistakes Before You Invest in Student Accommodation for Sale

Student accommodation for sale is a hot ticket item in the UK right now. A few people have realised just how lucrative it is and will continue to be in the coming years and they are buying as much property as they can. If you are reading this odds are that you are considering going into it yourself. Like with any real estate investment it is easy for a beginner to go wrong and if you make any mistakes you may end up losing a lot of money.

Here are some pitfalls that you should look out for:

•    Make sure that you get the right kind of financing. Real estate financing comes in all sorts of packages and there is one thing you can be sure that lenders are looking for – they are out to make as much money as they can in the shortest time feasible. If you look for financing for student accommodation for sale you should find affordable financing that comes with favourable terms – if you don’t know much about this kind of thing you may want to pay an expert for advice.

•    You may want to invest near some of the biggest UK institutions because these are the ones that attract the highest numbers of students but here is what you should keep in mind – everyone else is thinking the same way and in no time there will be so much private housing available for students near these institutions that filling vacancies is no longer easy. You may want to look a bit beyond and into some of the smaller institutions as they also have housing needs and continue to attract increasing numbers of students each year.

•    It is never a good idea to buy a unit by yourself. Some people think that this is the smart thing to do as it helps them avoid paying extra to a management company. If you buy a single unit yourself you are in charge of maintenance, student vetting, collecting rent and all other issues that may arise within the unit. You also have very little say as to how the overall property is managed – the majority share holders will out-vote you every time. it is best to invest through a student accommodation property management company. You will receive your payment every month through a bank of your choice and you never have to worry about managing the unit.

•    If you want to make the most out of student accommodation for sale you should be prepared to invest in the long term. These units have a very high demand and it is not expected to come down any time soon. If you invest in the short term you will lose out, so if you think you will need your money in the near future you should be looking into investments that have a fast turn-around time.

Lastly, do your research into any student accommodation management company that you are thinking of investing with – make sure they can be trusted to properly manage your investment.

5 Things You Likely Haven’t Thought of When Buying Student Accommodation Investment for Sale

student accommodation investment for sale

With the recent university culture on rise, it has become a profitable business to invest in student housing. The number of students has been increasing day by day and universities are unable to provide enough dorms to accommodate them.

Know your target customers

University students prefer to live in dorms rather than renting their own home. Usually the dorms are not enough to house all the enrolled students, this will work in your advantage and will bring more interested students. For this reason, it is important to know if there are enough people who will be searching for a home. Take the numbers of dorm residents and the pupils studying in the institute and calculate the total number of extra pupils.

Watch out for frauds in student real estate market

Some people sell already built and maintained buildings to real estate investors. They promise a profit but fail to deliver. The profit estimates are usually much more than what the actual revenue is. They do not mention the problems that are already been faced by the residents. There may be big issues which need to be resolved and are not mentioned on the deal. These kinds of deals will result in a huge loss and can fool a person into losing a large amount of savings.

student property investment

Students demand good quality

Most students are not willing to compromise on the quality of their living arrangements. They want the comfort that their homes provide, and they will not be happy if you take an old building and fix it up with minor changes. The building should be a comfortable living place. Consider the place which has a gym nearby or good restaurants and where a supermarket is located nearby.

Maintenance may be expensive

Buying an apartment may be easy to calculate in respect of finances but what most people do not take it into account is the cost that will be added to run the building. Students will expect the owner to pay for the repairs of the house. To avoid this surprise, take an estimate of the cost of maintenance and add that to the estimated costs while setting the budget.

Location plays an important role

For students, the location preferred is much different than what may be liked by a family. Where a family will prefer a calm, peaceful place students will like a place which is close to the bus stop and the night life of the city. Apart from this, it may be useful to choose a place a bit far away from family place. This will provide the students a bit freedom to make noise.

The Reason Why Student Accommodation Investment Yields Are Better Than Buy-To-Let

student accommodation investment yields

Your real estate investments haven’t given you very impressive results lately; you have invested a lot of money in buy-to-let properties but your returns are getting lower and lower each year. Have you considered investing in student accommodation? Purpose Built Student Housing is one of the best kept secrets in real estate. Savvy investors realised a long time ago that this is one area where they cannot go wrong – while commercial and real estate investments suffer due to market adjustments this is one area that remains strong.

Purpose Built Student Housing is exactly what is sounds like – it is housing that is built for students. The quality of degrees on offer from UK universities has continued to improve which means a higher global demand. Unfortunately many universities do not have the resources to improve dorm housing – many of these students come from far away countries only to find themselves living in overcrowded dorms. Many end up renting living quarters in private residences.

Today, a good number are turning to student accommodation investment – they pay less or the same as they would to live in a dorm but they live in much better spaces. They are able to enjoy more privacy, a peaceful atmosphere to study, nice common areas and more. This has proved to be an attractive investment for the few who look beyond commercial and residential real estate. However, some are reluctant because it is a relatively new niche and they are not sure what it holds for the future. Should you invest in buy-to-let properties or should you go for Student Accommodation Investments? Consider the following:

• The demand for this kind of housing has been rising steadily in the last 15 years. The demand ratio for bed space is about 2.3 – this means that at any one time there are more than 2 students waiting for a bed to be free. You will not find this kind of demand in any other niche in the real estate market. If you choose buy-to-let one of the things you have to deal with is filling vacancies – every time a tenant leaves it takes time to find a new one to take their place.

• Students tend to stay for the duration of their studies which means that turnover is low. If a student signs up at a PBSA residence at the beginning of their course you can expect them to stay for the duration. This not only assures your income, it also allows you to plan.

• You don’t have to worry about managing your investment. Typically, instead of directly buying a unit for student accommodation investors approach an investment company through which they make their purchase. The investment company is charged with all aspects of management of the property. They make sure that it is well maintained, that all students are properly vetted and all vacancies are filled without any delays.

Instead of pressing your luck with buy-to-let investments why not try student accommodation instead? Research shows that it will only continue to grow.

An Exclusive Look into the Student Accommodation Investment Market UK

As you expand your investment portfolio you are wondering whether student accommodation investment is something that you should spend your hard earned money on. Most people who invest in real estate choose the traditional residential and commercial investments – the buy a property (or into it) and hope to make money by renting out to tenants or reselling at a profit at a later date. While these models work they are prone to shifts in the economy and public perception. One real estate niche that is seldom looked into is student accommodation investment which is precisely why you should be looking to invest in it.

Student accommodation investment is a simple model – you buy into student accommodation and your money comes from student rental fees. Those who have already invested in it will tell you that there is no better place to make money in real estate and it is no hype – here is what you should take into account as you decide whether or not you want to join them.

The student population in the UK continues to grow every year – according to statistics, each year we see a 3% growth and it is not expected to slow down any time soon. The quality of higher education in the UK continues to improve, with universities offering degrees that are relevant in the modern world. It has become a hub for students all around the world who are seeking nothing but the best. These students have to stay somewhere. Unfortunately, while these universities invest a lot of money in their curriculums they don’t do much for student living quarters. They acknowledge that dorms have become crowded and lack facilities but the cost of living in them hasn’t dropped.

As a result many students are seeking Purpose Built Student Accommodation. These are homes and complexes that are built near universities to house only students. In the past property owners would install Wi-Fi and a few other perks and hope to attract student tenants but that is no longer the case. The rising cost of rent in the UK means that today’s student tenant is looking for more than just simple perks – they are looking for high quality accommodation that is reflected in the rents that they pay. They want spacious rooms that are en-suite (many aren’t interested in sharing bathrooms), they want to have a gym, a studio, a clean common area, a pool and much more. This is what investment into student accommodation is – you will be investing in a property that provides all these things to students at affordable cost.

The best thing about this kind of investment is that you can expect it to continue to bring you healthy earnings for years to come. Student enrolment numbers are not expected to drop any time soon – if anything it is predicted that they will keep rising. What this means is that investors will never have to deal with vacancies for long periods – as soon as a bed is free they can be sure that it will be occupied by a new tenant.

Conclusion

Why not cash in on the student accommodation investment market now, when the demand is so high?

This is the Reason Why Investors Love Buy To Let Student Accommodation

buy to let student accommodation

This is the reason why investors love to buy to-let student properties: they make good money.

Yes, this is the reason but you will learn more reasons why you need to be investing in this field as soon as possible. Read on if you just want to find out more.

Huge Demand

The to-let student market is huge with a strong demand, and you can profit from it. A lot of investors are making a killing in this landscape, and you can too. Yes, you can make more money here if you can afford the investment level required. But you will be very well rewarded down the road. In the UK, for instance, investors are making good money developing HMOs around leading universities, as this has been proven to be a great source of revenue for them these days too.

Growth

The full-time student population in the UK is expected to rise in the coming years, and that might mean more money in your pockets if you know what you are doing. You will make more money with student housing than with the traditional buy-to-let model, and when we say this we mean it.

License

The HMO market might change in the future, but this change will be for the better. You might need to get a license to have an HMO in the UK because regulation might change in October, and you to be prepared for this down the road.

High Rates

You can profit from the harsh reality of the housing market in the UK because this market is full of high prices and low services. Yes, this is true and you can make good money if you do this.

The UK is full of angry landlords and you can make more money if your company treats your customers well, Yes, this could be your road to riches, and you should do this down the road. You should make sure that your properties down have any defects because this will affect the quality of your service down the road, and you have to avoid this from happening at all times.

Remember that HMOs and to-let properties are here to stay for a long time because they fill a need. You can make money here if you want to and that is just part of the fun. Therefore, do this and have more fun today with these types of investments.