Student Property — The Fastest Growing Asset Class

Over recent years, investors have
become increasingly interested in a diverse range of property.  To maximise rental yields, investors
are now considering everything from hotel rooms to overseas homes.

If you’re looking for a property
investment which offers a superb rental yield and the potential for capital
growth, then student accommodation could be the answer.  We explore this growth area here.

The fastest growing property asset class

Student accommodation is the
fastest growing asset class in the property market.  And, Nick Marr, director of the leading property company
Homes Go Fast, believes that it’s an area investors can no longer ignore.

He said: “Offering exceptional
rental yields and a high level of occupation, it’s no surprise that savvy
investors are increasingly turning to the student market.”

Yields on student property can
often be as high as 7 to 10 per cent and the sector is recognised for its high
occupancy levels, stability and predicted longevity.

Make sure you choose the right student development

While the potential returns of
student accommodation are excellent, Mr Marr sounds a note of caution.  He said: “With a large number of
developments currently under construction, it’s essential that investors choose
the right property for their needs.”

Mr Marr highlights several
factors that investors should take into account when buying student
accommodation.  Firstly, it’s
important to know who the developer is and what their track record is like.

“Find out whether the developer
owns the site and has full planning permission for the project,” says Mr
Marr.  “If you don’t, you could end
up losing your deposit or risk the developer not having the funds to complete
the purchase of the site or the build.”

In addition, investors should be
sure that there is a demand for student accommodation in the area.  Mr Marr adds: “Towns and cities with a
growing student population are often ideal, as universities are rarely able to
provide housing for all their student population.”

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