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