Is Student property still a good place to invest?

Discussion in 'Student Property Investment' started by Michelle Barringer, Dec 7, 2015.

  1. Michelle Barringer

    Michelle Barringer Member Forum Partner

    Given the high fees to students and huge number of student buildings that have been completed - is student housing still a good place to invest?
     
  2. George79

    George79 Member

    There will always be more students every year and if you can compete with on-campus dorm rooms, I do not see why not. Just offer things that you know they will need such as free wi-fi.
     
  3. Bradley M

    Bradley M New Member

    Yes, and it will always be. If we are talking about Britain. Its town’s and cities are currently being transformed by growing student populations.
     
  4. I totally agree, student accommodation in the UK has improved dramatically over the last 20 or 30 years. Gone are the basic student accommodation options of years gone by in favour of multiple occupancy buildings with an array of shared facilities.
     
  5. Longterminvestor

    Longterminvestor Active Member

    The UK student property market has been extremely strong in recent times. When you bear in mind the extra capital pouring into the further education system it is difficult to see anything but further growth in demand in the longer term.
     
  6. nmb

    nmb Well-Known Member

    There is always pressure for the government to invest more and more in education so I think student accommodation will be a great investment for many years to come. Also, the more people in further education the fewer people on the unemployed list - these politicians can be a little sneaky :)
     
  7. Longterminvestor

    Longterminvestor Active Member

    Which are the best cities for student accommodation investment in the UK? The ones that spring to mind for me are Manchester, Liverpool, Leeds and St Andrews in Scotland.
     
  8. NehaS

    NehaS New Member

    It depends on totally your decision and if you want to do that then you should definitely do that.
     
  9. realdeals

    realdeals Member

    The UK has a large number of high quality universities and other types of further education. These attract students from other parts of the UK as well as overseas. If you pick the right city, the right area and the right type of property, you can create significant long-term cash flow.
     
  10. Ali.M2000

    Ali.M2000 New Member

    The uk's student property has increased significantly, there are always going to be universities therefore students will always need accommodation. In my opinion its a good idea to invest as it will always be in demand and will always make a profit
     
  11. Longterminvestor

    Longterminvestor Active Member

    In some ways student accommodation could be seen as a hedge against an economic downturn?
     
  12. FWL

    FWL Member

    If the UK economy does take a wobble after Brexit it will be interesting to see how the student accommodation market holds up. Personally I agree with you but we shall see.
     
  13. Newday

    Newday New Member

    Over the past three years, the number of investors in student housing has increased 2.5 times. Tranio.com highlights the largest market in the United States. The monthly cost of renting student housing in US ranges from $200 to 2.2 thousand. The rental yield that an investor can expect is an average of 5.9%.
     
  14. realdeals

    realdeals Member

    You have brought up a great point @Newday

    This is now becoming a corporate market - private investors are slowly being priced out.
     
  15. Gareth Bain

    Gareth Bain Member Forum Partner

    Considering the current economically & pollical situation in the country, I think that Student Accommodation is a great investment opportunity. Once Bexit goes ahead, we expect the Sterling to see a slight dip in value which means that it would be cheaper for foreign student to study in England.

    Also, Brexit is all Doom and Gloom and the country goes into a recession or has a mini financial crisis, more people are inclined to go to university and study for longer to ride the storm than enter the workplace.

    With a weakening sterling, we will also see an increase of international investors looking to invest in the UK. With Buy to Let being clamped down by the government and additional stamp duties being charged to international investors, people are looking for alternative options.

    Property Investment through crowdfunding is providing a solution for both local and international investors. Now anyone can invest in student accommodation and they don't need huge amounts of cash.
     
  16. diyhelp

    diyhelp Active Member

    I guess the crowd funding option is an easy way of spreading your risk across multple assets. A mini-portolfio if you like.

    What is the secondary market like for crowd funding investments?
     
  17. Gareth Bain

    Gareth Bain Member Forum Partner

    Hi @diyhelp

    Spreading your risk across multiple assets is a good way to diversify your risk and your portfolio. This is what a lot of HNW investors do to diversify. However, if you are just starting out or trying to build a portfolio, you don't necessarily have large sums of money to diversify your portfolio and all you are looking for is yield.

    This is why crowdfunding is helping investors spread their risk and diversify their portfolios with relatively small amounts of money. At this stage the secondary market is limited so liquidity can be a challenge. However, with our model, your money is invested or a relatively short period of time - 6 months to 3 years max.
     
  18. John Wilson

    John Wilson Member

    Judging by how nuts they’re going building new student accommodation in Glasgow, it would seem it’s still a good place to invest!


    Sent from my iPhone using Property Forum mobile app
     
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