If it is your first time investing in property, or whether you are a regular with a diverse portfolio, current fluctuation in the economic market are leading some people to presume instability. The choices between different types and categories of investment is a tough one. However, by overriding any existing claims of an unsteady market, the differences between student and residential property are only subtle, yet these remain significant for any discerning property investor who are aiming to maximise their returns within the property industry.
Property investment overall adheres to a strict set of rules and guidelines, there is vast opportunity to produce some of the most significant benefits from a choice of investments in relation to your current circumstances.
Both residential and student accommodation are a viable and lucrative investment, however student housing benefits from the incessant population of students, ensuring this pushes up the demand across major university cities whilst keeping a low void period.
In order to get a lease, students are required to provide a guarantor, assuring rent is paid on time and in full. Additionally, on top of stable and guaranteed rents, a student buy to let investment is likely to offer high capital appreciation values, considering a suitable location and type of accommodation has been chosen.
As student numbers are increasing, it is imperative universities have the ability to offer the best student experience whilst keeping cost to a minimum. Students are increasingly searching for boutique housing within a commutable distance from campus, suggesting the multitude of dated, tired old-style university halls do not suffice and Purpose-Built Student Accommodation (PBSA) is taking over as the number one choice.
Demand for PBSA has reached an all-time high. Whilst there was initial controversy that Brexit may inflict a negative impact on the PBSA market in the UK, new research by Savills has suggested over £2.1 billion was transacted in student housing after the referendum, compared to a much smaller figure of £1.9 billion before. Subsequently, the PBSA investment sector is thriving with investors from around the world who recognise its potential and prosperous qualities.
Due to recent market growth and foreign investments, student property is a very profitable asset class giving robust returns and Savills states that investment in student accommodation is forecasted to rise by 17% this year, presenting the expectation of an increase in investment from last year to £5.3 billion in this particular sector.
One issue that has been raised is what impact the Brexit decision and slow withdrawal of the UK from Europe will have on the demand for university spaces and the number of UCAS applications yearly. Despite the general consensus of uncertainty caused by the referendum, the figures of overseas students moving to the UK are still multiplying as they aim to take advantage of our wealth of premium education and favourable exchange rates that is only predicted to climb higher.
RW Invest, property investment specialists based in Liverpool offer a diverse range of buy to let student opportunities that offer some of the best rental yields in the most prosperous locations within commutable distance to world class educational facilities across the UK.
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