Why invest in Student Buy to Let Property
Global Investments has been leading the way in the buy to let market in the USA for the last 8 years with more than 5000 sales completed.
Now Global Investments are offering unique investment opportunities to our global investor database in the UK student buy to let market.
We thought it best to explain in this blog the main reasons and the benefits we feel that makes the increasing market of Student accommodation here the UK an attractive proposition for the savvy investor.
Today it is difficult to find investment assets that pay a decent income. There’s no value in putting your cash in the bank thats for sure. The dividend yield on the FTSE 100 is a measly 3.66%.
One of the reasons for Global Investments success is that we reach out to the extremely wealthy investors but also the first time property investors who do not wish to gamble and spend huge amounts of capital but are equally looking for a good yield with relative safety.
Our USA investment market continues to be popular due to the minimal financial input to purchase a property in certain states. Being a UK company many of our investors have tended to shy away from UK property in the past mainly due to the cost of UK property with low yields available. Most would require finance that would also ultimately eat away at the yield potential.
Fortunately there is now a great alternative for these investors. Large developers in the UK are building dedicated luxury student accommodation projects. The result is a secure UK property investment with guaranteed rental income with attractive yields but more importantly at a low entry level of capital investment.
The following are the top 5 reasons why we feel investing in student UK but to let property makes sense :
1. Student numbers are soaring
The UK is arguably the number 1 Country that many overseas students look at for the best in further education. Our Universities are second to none and students from all over the world, especially China and the Far East are increasing year after year. The UK is consistently increasing in popularity to international students, with thousands of ambitious students choosing to pursue their qualification in one of the many top-notch UK universities. With its world-recognised universities, culturally diverse environment, and highly-skilled academic staff, the UK is truly the epitome of academic success.
There are more young people entering further education than ever.
According to 2018/2019 statistics from the Higher Education Statistics Agency, there are currently 485,645 international students pursuing their degree in the UK. The number has experienced an increase from the previous year statistics which encompassed a total of 458,520.
The trend indicates that numbers will continue to rise and all of whom need accommodation.
2. Universities can’t keep up with the demand for accommodation
Traditionally, students would stay in halls of residence at the university in which they studied. But with the soaring demand, there simply aren’t enough rooms available on campus. Many universities now only allow first-year students to stay in their halls of residence. Even so, many first-year students won’t get a room.
Second-year students and beyond partner up with their friends and rent private accommodation.
3. Student accommodation is recession-proof
People don’t stop going to university during a recession. In fact, the opposite is probably true. When fewer jobs are available, school leavers are more likely to consider a course of study. So, student accommodation is recession-proof, providing a greater certainty of income for the buy-to-let investor.
4. Purpose-built student accommodation is attractive
Purpose-built student accommodation provides all the benefits of living in halls of residence. For example, there are common rooms, Wi-Fi, and study areas. The best are only a few minutes’ walk from the university, and close to local nightlife, shops, and work opportunities.
If you invest in purpose-built student accommodation, you eliminate many of the disadvantages of HMO v BTL investment while retaining the benefits of higher yield and shorter void periods. With a good track record to back up the yields going forward, purpose built student accommodation that is already up and running gives investors certainty they’re craving.
5. Your property investment is managed
Custom-built student accommodation usually includes property management. It may be provided by the university itself, or by the building administrators. You benefit from ‘boots-on-the ground’ investment management that is active and proactive.
So to sum up, For a beginner property investor, the dynamics of student accommodation provide a greater certainty of income. The yield may be a little less than a more risky purchase but the current projects that Global Investments have acquired offer great yields of up to 10% with full management in the best locations, a truly worry free hands off investment.
For more details contact us now…..