Investing in a Student Property
It might be time for one of your children to head off to university and youâ€™re worrying abut where theyâ€™re going to live, or you could be looking for an investment to finance your retirement. If so, buying into the student rental market could be a good option. It may allow you to cover the rental costs for your children by letting out the additional rooms, and at the end of their course you could carry on renting or cash in on a sale. However, itâ€™s important to choose the right property or you might simply be throwing money away.
When youâ€™re looking for a secure rental property, new-builds are often the way to go. Modern students demand good-quality accommodation, and this is far easier to provide in a newer property. There is less work required, and all the fixtures and fittings will be included. If youâ€™re buying in a new apartment building, they often offer better security features, such as CCTV systems and industrial gates, as well as parking facilities.
Where a property is situated is extremely important for students. They want to be as close as possible to the university facilities, as well as near the nightlife. If possible, choose a house or flat that is on a good bus route, as students donâ€™t want to be spending lots of time commuting.
Donâ€™t Try to Be Different
Often investors presume that students are after something unique, and they end up stuck with a property that they canâ€™t let. For instance, small rooms within apartment blocks may appear easy to manage, but students are usually looking for more space and facilities than these can provide. Itâ€™s crucial that you look at the final resale value, as anything too quirky could be hard to sell.
Budget is a key consideration, and you need to shop around for the best mortgage. Banks will usually require a large deposit and a healthy rental income before offering the best deals. You also need to take into account the cost of replacing furniture and carpets because of wear and tear.
When youâ€™re buying a property, you should be thinking about the strength of the investment over a number of years. After your children have graduated, you could have an excellent property to continue renting out, or it might have increased in value enough to sell for a profit. As with any property sale, consider the long-term opportunities.