MyPropertyPowerTeam
Find your next rated tradesperson
Find a Tenant The Business Pages for Property Investment Current and archived property articles Join in our Property Investment and Landlords Forum and have your say! return to my property power team home page Services for Landlords Buy to Let mortgages and legals Find your next investment Prosper with Property Education Property Investment networking opportunities
Article> Why should I invest in student accommodation?



Article kindly supplied by Alan Forsyth


Property Investment Tips
53 Crusader House, Thurland Street,
Nottingham, NG1 3BT
01159474155

www.propertysecrets.net
www.property-investment-deals.com
www.property-investment-tips.com

 

Hi, hope you are well – we are delighted to have finally found an opportunity in this emerging property market offering us the returns we look for, plus the all important level of discount we insist on for our clients.


With more students going to university and college each year and an estimated 2.4 million students in the UK, and a huge shortage of accommodation, there is a huge opportunity to make large, passive income from investing in high quality student accommodation located in cities with prestigious universities.

Currently there is insufficient supply of student accommodation, with only 23% of demand for beds being met by university maintained properties.

Existing accommodation universities have is often outdated and largely not fit for purpose. Private operators are now working with universities to purchase and develop their existing stock, or build new.

In 1996/97 there were 1.8 million students which is expected to increase to over 2.4 million following a surge in applicants for 2011 degree places.

Knight Frank has reported, through their own independent research, that only 50% of all students in the UK have access to high quality purpose-built student accommodation.

The expansion in student numbers in recent years has led to a far greater demand for accommodation pushing up prices and in turn rental yields.

There is intense competition among universities to attract students and the availability of prime quality modern accommodation is a critical part of their marketing plan.

Now is a perfect time to take advantage of current investment conditions.

Student Halls are an asset class that rarely become available to individual investors with universities tending to purchase units before they are offered to market and landlords not needing to sell due to the high yields.

Student accommodation is being seen as the single largest untapped real estate market in Western Europe.

Is this the right time to invest in student accommodation?

According to research by Knight Frank, rentals in this area remain robust with a recorded growth of 5% per annum over the last six years. (compared to 0.6% for commercial
property).

Substantially higher growth was achieved in university towns over the past academic year. Demand for university places rises during recessions and the proportion of students that are returning postgraduates has risen to 24%.


Preliminary figures for the coming academic year already show a significant increase in applications with UCAS reporting a 12% rise at its October deadline.

Students pay rent in advance, and rents increase year on year – and with a management company in place this offers low hassle and high returns!

How do I know what the value is of the student accommodation on offer?

As an asset class and no longer a niche property market, the sector is maturing and becoming recognised as an important element of the wider property investment market.

Valuers and lenders alike recognise this and will put a value on this, just as they will with other investments. We have already had a RICS valuation recently at 30% more than the prices we have secured.

What rental returns can I expect?

Based on 42 weeks at £75, will be 13% gross yield – and 10% net yield – we have also secured a 2 year rental guarantee at 10% net yield from completion. So straight away you know are getting an excellent return on your investment – up to 9% higher than the banks will offer you.

Why Manchester?

The majority of key university towns showed 100% occupancy rate for the last academic year with private halls mainly targeting affluent domestic, overseas and mature students. The University of Manchester is the UK’s most popular university receiving 53,900 applications in 2009.


Why this opportunity - Summary

  • Close to one of the UK’s major universities
  • Prices secured 30% lower than all comparables – just £25,000 compared to £35-40,000 of similar opportunities!
  • Two year rental guarantee!
  • Excellent location with stunning property and grounds
  • Completes by end of year – so no long wait for a return on your investment
  • Management team in place for on completion
  • Price – just £25,000 for student room in managed halls.


For more Information, sign up for free at property-investment-deals.com and receive our free 7 part guide, “7 Fatal Mistakes to Avoid”.

To enquire further, and receive our free copy of “7 Fatal Mistakes to Avoid as an Investor” sign up here Alan Florsyth Fatal Mistakes

 

Alan Forsyth Property Secrets

 

 

Bookmark and Share

Alan Forsyth
Alan Forsyth 

Alan Forsyth 7 Fatal Mistakes

 

Access the Business Directory

 
© 2020 My Property Power Team | privacy policy | terms & conditions | contact us | advertise |