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Liverpool Student Accommodation
January 11, 2010Article by Ray Withers
There has been quite a bit of positive press lately about the benefits of investment within the the student accommodation sector. The only problem is it has always been rather hard to obtain good quality stock. I am not referring to individual houses of which there are hundreds of available properties, but actual halls of residence. Traditionally, these are snapped up by institutional investors and funds and it is rare that we see this type of property become available.
However, Property Frontiers has managed to source an incredible opportunity to invest in such stock within Liverpool City Centre. Now, normally I don’t like to promote any of our investments on the blog, but sometimes they are too good not to mention.
For just £38,000 investors can purchase an invidual unit within a private halls of residence, giving a current net yield of 10.01%. The tenants are already in place and each tenancy agreement is taken for 51 weeks a year. Giving you continous year round returns. Since the building was refurbished 12 years ago, the management company had obtained 100% occupancy every year.
Finding ways to make money in a recession is difficult but if you have the cash available and can exercise your buying power, then student accommodation is one of the smartest asset classes available. Rents in this sector have increased by around 5% a year for the last 6 years compared to a 0.6% for commercial property. UCAS has reported a 12% increase in rental applications for the current academic year at October. Furthermore Liverpool experienced a 13% increase in rental growth from 2008/09 to 2009/10.
If you would like to discuss this investment opportunity with any of our consultants please call 01865 202 700 (quoting liverpool blog) or visit our website for further information.
Ok sales pitch over!
Many thanks as always for reading,
Written by: Christopher Chadd