Why Investing In Student Accommodation Is Profitable

Why Investing In Student Accommodation Is Profitable

Almost every person wants to make some good money in real estate and property. In fact, this is the reason why people have been investing in all kinds of residential and commercial properties around the world. However, some people have got their fingers burnt in the last recession. Hence, they don’t want to make the same kind of mistakes by buying expensive properties in local areas which may cause numerous problems because of difficult tenants, void periods and low yields.

In simple terms, such an investment is not a source of passive income, but a major problem. In the last few years, a lot of investors have been interested in student accommodation. It has emerged to be the best real estate investment. Here are some reasons why you should invest in student accommodation.

Constant Yield – Almost every University operates throughout the year without closing for a single day. It is important to understand that courses run differently. This means some students may be in a semester, while others remain on a break during the same period. It also means when old students are about to leave for a break, news ones will be available to take their rooms. Thus, student real estate guarantees full occupancy.

High Yield – One of the most important reasons why student real estate is more profitable is because of the increasing demand for inexpensive and cost-effective student accommodation in many different areas. Moreover, there has been a shortage of student real estate properties.

Just like every other aspect of the economy, this huge demand means you will be able to rent out rooms at good prices in most areas. If you’re a landlord in a student property, you will be able to make about 5-10% more than your counterparts managing non-student properties.

Resale – Due to the increasing demand, there are a lot of students always looking to buy or rent student properties. Thus, if you plan to invest in such properties, you will be easily able to sell them at a good profit whenever you decide. Some people are afraid of renting their properties to students. They think students would misuse the property or cause some damage. However, these days students are serious about their studies and like to keep their rooms in order.

Advance Payments – Most of the time, student property owners such as Newcastle Student Housing can even ask students to pay the rent for the entire year at once. Most of the students don’t have a problem with this scenario. They just want to secure quality accommodations in the city at the best prices possible. A student property owner can get payments for over 40 weeks in lump sum.

Students Compromise – Students are always prepared to put up with various aspects like lack of parking or long flights or awkward stairs. This makes it easier for property owners to manage the property and ask for a decent price. In addition to this, many students share properties and split rental costs. Payments are supported by Government-backed loan companies. Therefore, student accommodation is a safe source of steady income.

Due to all the reasons mentioned above, you can easily understand why student accommodation is a very lucrative investment. Since a lot of Universities have been trying to increase the student population, it is clear that the demand for student properties will only increase. Thus the rates of the property will also increase.

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