One type of investment which has demonstrated its strength and resilience during the economic crisis is student accommodation. It remains one of the most robust investments and has emerged as a property market sector in its own right. A number of investors get attracted to the strong fundamentals of student accommodation which offer a secure and reliable income stream. Therefore, if you are seeking the right investment option in regards to the property market, then you may want to consider investing in student accommodation.
Outsourcing student accommodation allows the universities to focus on their key educational activities and services. With outsourced accommodation, students would benefit from availability of modern and stylish rooms equipped with internet access, on suite facilities, parking and security. Investors can engage in this investment opportunity through many schemes that have come up in recent years.
When seeking a mortgage from the bank towards this purpose, you will realize that they give student accommodation investment more attention because it’s a low risk kind of investment. Due to this reason, it’s the ideal starting point for people who want to get into the lucrative property market. There are several benefits of investing in student accommodation.
The following paragraphs describe why student accommodation investment is profitable.
Constant Occupation: Most universities operate throughout the year without closing its doors. However, the courses often run differently meaning that some students can be in sessions while others are on a break. But when some students leave for a break, there would be new ones to take their rooms. Therefore, full occupancy of the property throughout the year is guaranteed.
High Yield: The major reason why this investment is profitable is due to the high demand for affordable but high quality student accommodation in several areas. In fact, there is a widespread shortage of student accommodation properties. This massive demand implies that you will be able to rent out the rooms at a decent price in most areas. Landlords can make between 3-10% more on their student accommodation property than their counterparts with non-student accommodation property for rent within the same place.
Resale: There are many people who are looking for student accommodation properties to buy. Therefore, if you decide to invest in such properties, you would be able to sell them at a profit when you decide to do so. Most people fear that if they rent their property to students, they may misuse and damage them. However, modern students are more serious and would certainly keep their rooms in good order.
Advance Payments: In most cases, student property owners can ask for the rent for the entire year to be paid at once. Most universities would do this for their students to secure quality accommodation facilities in the city; meaning that you can get payments for between 43 and 51 weeks in a lump sum.
From the aforementioned benefits, you can understand why student accommodation is a lucrative investment. With a number of universities working on increasing their student population, the demand for student accommodation would equally increase. On the same note, you will increase the rates of your student property, thereby making more money.
Abbas Hussain writes on behalf of Integrity SEO Experts, which is a company that serves a number of clients in the property and real estate industry.
This article reflects the personal opinion and expertise of the mentioned author and not that of Khusan.com