Buying property right now can be a big risk. The property market remains in somewhat of a downturn and investors are having trouble making the kinds of profits they hoped for with one exception – student accommodation. Student accommodation investment is managing to beat the slump in the property market and is still able to turnaround a decent profit for those who were smart enough to invest in it. So, any property investors, who are currently on the lookout for investment opportunities, should definitely be thinking about student accommodation investment.
High Demand
The rental market in University towns is still doing great business for property owners. After all, thousands of students flock to these towns and cities each year in order to continue their education and they all need places to stay.
This has allowed student accommodation to buck the property trend already and many experts believe that it will continue to be a good investment for anyone who buys a student property to rent now.
Steady Returns
The great thing about student accommodation investment is the fact that you are able to make steady returns, thanks to the constant influx of students to University towns and with average yields of 6.45%, owning a student property has the biggest rewards for landlords in the UK.
This is largely due to the fact that you are able to rent student accommodation by room, which means that you can charge more for a student property overall than you could do if you were renting to a family or singles.
Scarcity
If you can make a student accommodation investment in one of the many university towns which is facing a shortage of suitable student accommodation, then you could easily see your yield rise to as much as 15% in some areas, which is practically unheard of with other types of property investment.
So, to answer the question posed in the title, it would seem that yes, student accommodation investment really is a good idea which could see big returns for landlords who buy well, in the right areas.
Landmark Developments offer a number of opportunities, for student accommodation investment, across the UK. Visit their website to find out more about buying student property to let.