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Investment In Student Accommodation A Sound Choice

January 13, 2010Article by Ray Withers

In a world where property investment has a green cross code (safety first), and risk aversion is a life or death attribute, there has been a resurgence in buy to let investment, and within that, a resurgence in student property investment.

“For obvious reasons student property investment will never be as popular as other types of property investment. But students always need accommodation, year in year out. This combination of truths leads to a shortage of student housing for rent, which means that student property investment offers some of the best yields in UK buy to let,” said David Cox, director of UK based international property investment consultancy Property Frontiers.

Cox went on to explain some of the strengths of student property investment:

The voids are few and far between

Marketing costs are tiny; it’s all word of mouth and campus flyers

And payment of rent tends to be reliable, from grants or parents

“What’s more if the landlord shows a bit of savvy, throwing them out with no deposit for party damage should never become necessary either,” he added.

Property Frontiers are currently marketing an excellent buy to let student property investment. Studio rooms amidst the colleges and universities in central Liverpool from £38,000. Think about that just for a moment: a Studio apartment in the centre of Liverpool for £38,000 is an incredible bargain on its own, but given the investment strengths covered above it becomes even more incredible.

Demand for student accommodation in Liverpool grew by 12% last year, and this development has had 100% occupancy every year for the last 12 years — since it was refurbished and modernised. It is a fully managed — hands free — opportunity with tenants already in place, and 10.1% net yields are on the table.

Cox said of the development:

“Opportunities like this do not come along every day. At a time when safety is the key to property investment, this is one of the best we have seen for today’s buyer. Banks are struggling to offer us 4% on our savings, and here we have a property at just £38,000 that has proven its worth with 100% 51 week per year occupancy since it was refurbished 12 years ago, which offers buyers the chance to earn 10% per year, while their unit will also grow in value at around the rate of inflation — it’s a no-brainer really.”

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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