Investing money on properties has been going on since time immemorial, and it is perceived as one of the best ways to build wealth. What most people do is get a buy-to-let property, they hold on to it, and after a few years when the price of the property increases, they sell it for a better price.
However, many investors have realised that this is not that simple as it sounds. There are mortgage costs, and there is also the sometimes problematic stagnating property market. Plus, the changes in tax relief has also made it quite challenging to attain attractive returns. Looking at all of this, there is another investment that you can think about, and that is student property investment.
As indicated by the Higher Education Statistics Agency, there are presently more than 2.3 million students going to college in the UK. UK is not just the hub of higher education for UK students. Still, there are many international students as well, who move here for higher education, mainly due to developing economies and the UK education’s reputation worldwide.
There is already a huge demand for student accommodation across the UK and students are increasingly looking for high quality accommodation and lifestyle whilst parents want their children to have the best possible learning experience and environment.
Top reasons to invest in student property
| · Top Performing Asset Class
· Low Cost Of Entry · Hassle-Free & Hands-Off · Proven Model High Yields |
· High Demand
· Fully Managed · No Stamp Duty Charges · Mature & Stable Market |
This is why StripeHomes is investing in Quayside View Studios which is perfectly located to meet the high student demand in the city with 126 self-contained studio & one-bedroom apartments in a prime location and within walking distance of Newcastle’s two top universities.
Now, since we all that these students will need someplace to accommodate themselves, good quality student accommodation is always in high demand.
So, this is the reason why student accommodations have become a popular investment target in a couple of years.
If you think that student accommodation is only about squalor and chaos of the young students, then what you should know that the investment opportunity in student property has drastically changed. This has happened because of PBSA, which is Purpose Built Student Accommodation, and it is predicted that by the end of 2019, the value will reach out to be £53 billion.
So, what are the advantages of putting resources into student property contrasted with purchase with buy-to-let?
To begin with, you are putting resources into an organisation with an arrangement of student properties, as opposed to putting resources into and dealing with a sole property yourself. With the goal that implies no late-night calls to fix a dodgy boiler or performing propelled maths to turn out how the ongoing purchase to-let charge changes will influence you.
As physical resources, student property is likewise usually separated into rooms instead of individual premises. So, whether the proprietor organisation possesses various four-room properties or one huge 25-room property, the risk is broadened crosswise over places or inhabitants.
On the off chance that one student falls behind on their lease yet, the others will be ready with the rent; this will have a negligible effect on the landowner’s capacity to pay the home loan and their general portfolio.
Moreover, there is less danger of properties lying lethargic and not creating money.
While PBSA has pulled in a great deal of interest lately, there are concealed dangers that are less appropriate to the revamped property.
To begin with, PBSA has a sole reason – on the off chance that under any conditions, there is a downturn in student request, the vast structures can’t be effectively changed over to create pay by different methods.
If you would like more information on our developments please contact us here.
