Factors to consider in your student property investment
Each year, thousands of young students set their sights on furthering their education through university and leave their family home for a new venture.
Despite the rising cost of university, the number of young people embarking on higher education is set to rise. If you are a property investor reviewing the different types of investment available, then you may have already realised how lucrative and stable student accommodation can be.
Strong returns and a high demand create an enticing opportunity for investors; it is no surprise that it has emerged as a leading asset class.
Of course, there are many reasons why student property is a popular investment, but what should you look for when deciding exactly where to invest? The factors below are some of the essential things to consider before and throughout your investment.
Location is an important factor in all property investments; however, when it comes to student property, it is imperative that you choose the right area.
Put yourself into the minds of your potential tenant. What will they consider? Clearly, students will be seeking accommodation in proximity to their university campus. Therefore, a property located within walking distance of their university is more appealing.
If the property is a little further away, considering the local transport links is worthwhile – students tend not to bring their cars to university, as many are located within bustling city centres.
Nightlife is one of the biggest attractions for many students, so being in the main throng of popular bars and restaurants is often a bonus.
Protecting your investment
Student housing has a higher turnover than regular private rented housing, so it is important that the property remains in good condition and up to date, so it never loses its appeal. Long-lasting fixtures and good-quality fittings will help your property retain its condition for a longer period.
There is also an increasing volume of purpose-built student accommodation (PBSA), built by trusted developers who work alongside property investment companies like RW Invest to provide premium facilities selected for their opulence, durability and finish.
Future-proofing your investment can be a little tricky as the truth of the matter is that no investment is entirely future-proof due to unpredictable turns in the economy.
However, it is wise to predict and plan for the future to get the most out of your investment in the longer term. PBSA is a niche asset class that is becoming more popular, particularly for those with a relatively low-risk investment strategy.
Considering trends within your chosen location is a good starting point. When it comes to student accommodation, it is important to look at potential plans for regeneration that will aim to boost the physical environment, reverse any decline, and boost the area’s overall economy.
Amenities on offer
Students lead hectic lives, so having everything in one place can build a sense of ease.
Having student accommodation that features extra amenities to help students unwind or socialise can provide a welcome retreat from the pressure of their studies. Think about what your ideal tenant would be looking for, and try to find a property that caters to these needs.
Ensuring your property offers more than the standard housing options will drive up the appeal. With that in mind, high-speed broadband, double beds, access to supermarkets, and an on-site gym are all fantastic selling points to help ensure students get behind your development.