Want to get into property? Want to not have to be worried about battling the broader housing sector and being ultra competitive on rents? Want a market that is always on the rise and in high demand? If you answered yes then you really do need to be looking at the vast potential of tapping into the student property market. Just one student property investment in your property portfolio can be a massive influx or regular and on-going income.
But this is not where the benefits of student property cease, no; the pros far outweigh any cons when dealing with this active sector.
Property investing tends to be higher risk, especially when reliant on rental income the only area where this is not the case is when dealing with student accommodation. In fact this is cash positive over the longer term. The reason for this is that student rents are usually higher than comparable rental property. This means that your mortgage can often be paid of much faster by using the rents you achieve.
Despite doom and gloom every year in the media about the state of our further educational system in the UK the fact is, every single year, students flock to universities and they will continue to do so. This coming of age and education continuation is not going to cease and industry predictions show that despite the spiralling cost of study, the rate of uptake of further education is set to continue to rise. For you, this means a long term sustainable demand and that is just about anywhere in the UK, it is not isolated to those cities like London, Sheffield and Leeds that are known to have very large student populations. Have a look at www.studentaccommodationinvestment.net for the latest news on upcoming areas and hotspots.
Consistent tenancy, if a student is studying then they needs accommodation. Yes there are times when the property will be empty or have reduced occupancy as there are set terms and periods of time when the students may return to their family home but student rents are higher to factor this time into the overall rental equation. Between one let and the next you can have up to seven months to let the property to the next batch of students and if you are positioned well in terms of location, you will have a good choice of student tenants to select from.
Student property can be any type of property, houses or flats and due to the halls mentality, multiple lodgings in houses are the norm and rental rate are chargeable per person rather than per the household so again this tends to give a much higher overall rental yield.
Regardless of the area, if you are in or close to a university the rental income and indeed the overall property value is likely to remain stable due to the ongoing, high demand. This type of properly investment is simply one of the most resilient and as such makes it a very wise investment.
While of course student property is a long term investment, if you need a fast exit strategy then the re-sale value and speed of sale to savvy investors can ensure you receive your sale much quicker. If the house has been converted for student use, it can still be converted back from standard domestic use if needed as well. This creates a property win/win scenario.
All of the above are beneficial and make your investment cost effective and low risk. So what are you waiting for?
This article was written by Ross Kelly, founder and editor at www.investor-square.com
Posted-In: Markets Trading Ideas