With concerns over the prices of
residential property in the UK and overseas, investors are increasingly turning
to other asset classes in order to maximise their returns.
With a growing university
population in the UK, student accommodation is becoming more desirable with
investors. An increasing need for
privately built student accommodation to satisfy demand has opened up a range
of investment opportunities. Here,
we outline three reasons why you should consider a student property investment.
Excellent rental yields and a buoyant second hand market
The industry average rental yield
for a student property is around 6-6.5 per cent. However, many developments offer rental returns
significantly in excess of this ââ¬â up to double figures in some cases.
Considering the average UK rental
yield in 2011 was around 6.1 per cent, there is certainly the potential for
higher rental yields with student property. Make sure you do your research and determine that there is a
strong demand in the area as this will help you to maximise your profit.
In addition, there is an
increasingly buoyant second hand market for student accommodation. Many agents now offer student property
while some dedicated websites have been established that specialise in this
type of asset class.
Diversify your portfolio
Any investor will tell you that
itââ¬â¢s important to diversify your portfolio. So, if you own residential or ââ¬Ëbuy to letââ¬â¢ property, it may
be sensible to consider a different type of property investment. This will help you to spread your risk.
Large number of quality developments
As universities struggle to cater
for a growing student population, there is an increasing demand from the
private sector to provide student homes.
This means that there are more
and more student developments springing up around the UK. Investors have a wider choice of
investments and this helps you to make an informed decision and to pick the
right investment for your needs.
Enquiire about UK Student Investments
Author : Nick
Marr
