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.