United Kingdom attracts around 20,000 new students every
year because of its highly ranked universities and colleges. When compared to
the rest of Europe, United Kingdom has some of the best educational institutions
and that is why a lot of students wish to complete their higher studies from the
country. As a result of that lot of investors have started investing in student
property because it gives them better return than any other investments, plus
it is more safe. There are many investment opportunities in student properties of
the UK and there are several ways to compare them.
The student accommodation investment market has captivated a
large number of people and investors including the Moorfield Group etc. Student
housing funds are also active and many other people are participating in this
market as well. However, majority of the investors prefer to build a new place
for accommodation rather than buying the ones that are already available for use.
For this purpose the investors hire people to construct high quality student housing facilities and then, rent out space to earn lucrative amount from their
investment. A wise way of evaluating any investment in property is by making
comparisons to the other investment opportunities in the market. If you are an
investor in student housing then, you should be considering the following
factors:
Supply and demand:
The demand for student accommodation in swiftly increasing in the UK because every year the country is luring more foreign students than before. In spite of the fact, that each year many students, who finishes their studies also leave the country due to visa policies, but there rate is much lower as compared to the influx. Due to this reason demand for student accommodation in areas close to universities and colleges is still quite high, as majority of the students prefer to stay close their educational institutions in order to save transportation cost and time. Another reason behind the high demand for student accommodation is that educational institutions have limited number of hostels. Therefore, universities and colleges cannot provide accommodation facility to every student, so pupils do not have much choice, accept to look for a decent space to stay which do not have a high rent as well.
Return on investment:
Since the demand for such accommodations is high therefore, return on such investments is also quite high. For instance, in Loughborough students accommodation facilities will give investors an immediate 8% return on their investment. Likewise, in Leeds student housing offers an even better rate of return, 8.1% to 8.3%. So, in contrast to the bank savings account that only offers a 2% return, investors can gain more by investing in the student properties.
Since the demand for such accommodations is high therefore, return on such investments is also quite high. For instance, in Loughborough students accommodation facilities will give investors an immediate 8% return on their investment. Likewise, in Leeds student housing offers an even better rate of return, 8.1% to 8.3%. So, in contrast to the bank savings account that only offers a 2% return, investors can gain more by investing in the student properties.
Reliability of the developer:
If an investor opts to build a brand new accommodation facility to give it on rent to students then, he or she must make sure that they should find a reliable developer, who can deliver what he promises. Otherwise, there is a high probability that investor may end up losing a good chunk of his or her savings. So prudent investors should only hire authorized or renowned developers for this purpose.
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