Why More People Are Investing In Student Accommodation This Year
Financial experts believe that the real estate market is probably the best investment for every person who wants to make a stable secondary income. In fact, if you have some knowledge about the real estate market and want to invest in something that has vast potential for growth, you should invest in student accommodation. Like in the last few years, the student accommodation market is expected to grow this year too. A single student accommodation investment in your portfolio can be a great source of consistent income. The student accommodation market will offer much more this year. Here are some of those benefits.
Investing in real estate always has higher risks. These risks are even higher when rental income is involved. However, the student accommodation market is completely different. In fact, student accommodation investments this year will turn out to be cash positive in the long term. The basic reason is that student rents will be higher than other rental properties. As a result, you will be able to pay your mortgage faster.
Rise in the Number of Students
Despite bad notions about the state of the educational system in the UK, there is no doubt that thousands of students will still flock to universities from all across the globe. According to financial experts, cost of study and accommodation will continue to rise this year. As an investor in student accommodation, this would mean that you will have sustainable demand throughout the year. In fact, there are universities in almost every part of the UK, which will be flooded by students looking for accommodation.
Needless to say, if a student is studying in a university nearby, they will definitely need accommodation. It is true that you may have less occupancy in a couple of months when students may return to their homes. However, you will have consistent tenancy for a major part of the year. In fact, once a batch of students are about to leave, you will have the next batch ready to come in. You will also have a good number of students to choose from.
A student accommodation does not need to belong to a specific category. With changing trends, this year you will be able to buy a house, flat or apartment and turn it in to student accommodation. The more number of rooms you have, the more charges you will be able to extract from students.
As mentioned above, you don’t even have to worry if you live close to a university or not. The overall value of your property will remain stable throughout the year. Therefore, your risk factor will be significantly reduced. Student accommodation is one of the best real estate investments you can make this year.
Although student accommodation is a long term investment, you can still exit whenever you want to. With the boom in the student accommodation market, your re-sale value will be significantly higher. Moreover, you can convert a student accommodation to a basic domestic rental property if you want. Thus, it is a completely win/win situation for you.