Due to this growing demand, student developments are being built all around key university areas making it the perfect time for property investors to buy student accommodation whilst the need is at an all-time high.
What is student accommodation property?
Student accommodation is living spaces designed for students to live in throughout their studies. They are typically fully furnished, having communal areas for studying and socialising.
Benefits of buying student accommodation property?
Below are 6 of the main benefits associated with buying student accommodation property:
Benefit 1: Student population continues to grow
Over the past decade, there has been a huge growth in people attending university and living in student accommodation, and there’s no signs of it slowing down. Due to this, investing in student property makes sense as there is a constant demand for it.
Benefit 2: Purpose built student accommodation attracts tenants
Investing in property that is built for students is perfect, because it appears similar to campus accommodation with common rooms, Wi-Fi and communal study areas. But with modern interiors and bigger rooms, they attract students who want an affordable but luxurious space.
Benefit 3: Potential of securing long-term tenants
More and more students are staying on to study a post graduate course or a masters. Because of this, if they are happy with their current tenancy they are more likely to stay on, meaning that you’ll be able to secure a long-term tenant. This makes the management of the property much easier and provides a consistent income.
Benefit 4: Guaranteed rent
Despite the press giving students a bad name, students are typically good at making their rent, however if they have a parental guarantor, you’re safe in the knowledge that rent will be paid each month.
Benefit 5: Cheaper to buy
With the growing demand you’ll typically find that student property is much cheaper to buy. Therefore you’ll not only make a monthly income, you’re likely to make a capital gain when you come to sell, as long as you keep the property in good condition.
Benefit 6: Secured rental
Many student accommodation offers a fixed NET rental for a certain number of years because they are aware that the property will always be occupied due to high demand. In the unlikelihood that your property was to be unoccupied you can rest assured that you will still maintain your monthly income.
Investing in student accommodation is very popular among property investors. With the increase in demand and the rise of high quality apartments being built, it makes sense to invest whilst you can to get a great return.
Urbane Brix have a number of student accommodation properties that present a high NET yield. View all our student property developments here.
Student accommodation is in popular demand! With the rising number of university places, as more and more young people enter into further education, students are in need of somewhere to live.
It’s important for students to have a home away from home, a place that is within easy distance to university, shopping centres and supermarkets, and of course, the student nightlife.