Why invest in Student Property?
Updated: May 19, 2019
Why buy a student property accommodation? what are the benefits of this investment?
Why investors choose student accommodation
Investment property options come in a diverse range with different investment strategies to choose from. It makes it ideal for developing a diverse investment portfolio for all budgets and investment goals. Below, are some highlights and benefits of investing in student accommodation – a sector of the UK property market that offers very attractive yields for income seekers.
Demand - Student numbers are increasing year on year.
There are more young people entering further education than ever. It is a huge demand, and all of whom need accommodation. For example, Liverpool is home to around 57,000 students and is one of the UK’s most-loved university cities. The city itself has five universities and appeals to both UK and international students.Universities can’t keep up with the demand for accommodation. Students would stay in halls of residence at the university in which they study or very near by. But with the soaring demand, there simply aren’t enough rooms available on campus. Many universities now only allow first-year students to stay in their halls of residence. Even so, many first-year students won’t get a room.
Student accommodation is recession-proof
People don’t stop going to university during a recession. In fact, the opposite is probably true. When fewer jobs are available, school leavers are more likely to consider a course of study. A recession or down turn in the economy does not stop people going to university or higher eduction. In fact, all ages are choosing higher eduction to compete for the best jobs and earn their required qualifications especially when jobs have more competition providing greater certainty for rental income for investors.
High Net rental yields
Student accommodation earns a higher yield than the a normal residential investment property. It is because they are HMO investments (houses in multiple occupations). In a three-bed student apartment, you will receive three lots of rent. So, you’re likely to receive a net yield that is higher than a traditional buy-to-let property.
Purpose built accommodation
This type of accommodation provides all the benefits of living in halls of residence. For example, there are common rooms, Wi-Fi, and study areas. The best are only a few minutes’ walk from the university, and close to local nightlife, shops, and work opportunities. This is far more attractive to someone looking for accommodation in order to complete their university course.
Rent is guaranteed
Many developers offer a guaranteed rental return for a number of years to give investor the peace of mind that their investment will give them the returns they are looking for.
Professionally Fully managed
Student accommodation usually includes property management. It may be provided by the university itself, or by the building administrators. This means that there is no need to outsource a rental management company and the investment really is a hands off, stress free experience.
It takes several years to complete a degree, and students may also decide to continue their studies. This could be for between two and six years. This type of tenant consistency is what most landlords of stand alone residential properties don’t have.
Security by Title Deed
At QWP Real Estate, we work with the best developers providing student property investment with proven track records and expertise in their field. Your investment will provide you with a title deed in your name registered with HM Land registry in the UK.