According to Student Accommodation One in the Monetary Occasions (Ft.com), investment in student accommodation hit about £800m in the previous year with the interest in the relatively low danger investment model reaching an all time high. Lending has also typically enhanced for firms looking to build student accommodation due to the fact when it comes to lending, this is going to be noticed as a very secure loan from the point of view of the banks and monetary institutions.
Student home can present a wonderful investment opportunity and avenue for investors, for the reason that it has so many points going for it.
A single of the primary causes why investing in student accommodation can bring enormous rewards is due to the fact of a national shortage of readily available accommodation, which is heightened in numerous of the important places of the country. There is and in all probability has been for some time a lack of offered property for students to rent and as any investor knows, when demand outstrips supply, the investment possible can be enormous.
You then have to think about occupancy rates as well. As opposed to other investment properties, exactly where you hope to get lengthy term tenants, student accommodation will have a a lot less life span, but for the reason that of the shortage and also the near all year round occupancy demands, you are normally not going to struggle for a student tenant for most of the months of the year. In truth, numerous students will rent the accommodation all year, even if they go residence for a couple of weeks here and there, for the reason that they know that having someplace when they return could be troublesome to say the least.
It is essential to nevertheless have your exit strategy sorted when you invest in student accommodation, just like any other model, due to the fact with any investment that you make, you really should usually have some sort of exit method in place as this can make positive your investment stays as low danger as achievable.
When it comes to student accommodation, investing in full properties, like apartments, flats and homes normally provide the lowest danger because they have a significantly superior resale chance than when it comes to student pods, which can be really hard to move on to other investors or purchasers really should you make a decision that you want to sell. At least when you rent out a house or space within in a house to students, you nevertheless have the solution to shift the property ought to you want to move on to other investments or pull out your cash.