Despite the fact that purpose-built student accommodation is one of the strongest growth areas in the UK property market, many people still associate student accommodation with overcrowded sub-standard flats of years gone by. The truth is that purpose-built student accommodation of today is very different and as well as creating an attractive income stream it also offers a degree of protection in times of recession.
Impressive long-term returns
Over the last five years the annual average return on purpose-built student accommodation has been an impressive 11.8% which compares to 7.8% for residential property and just 7.4% for commercial property. Property Partner is a company which offers individuals the opportunity to invest in high-quality in demand purpose-built student accommodation. Using a team of property experts the company reviews in excess of 2500 properties each month only selecting those which meet the company’s demanding criteria.
Historically many property asset classes have struggled with liquidity issues but, with Property Partner, investors can list their shares for sale to other investors at any time on the Resale Market.
Protection against recession
The beauty of investing in higher education is the simple fact that cumulatively public and private funding increases year on year. In times of a buoyant employment market, many people will look to further education such as universities to expand their knowledge aiming for high-level employment positions. During times of recession, employment can sometimes be difficult with student numbers often increasing as they look to higher education qualifications in readiness for the eventual recovery in employment markets. This is before we even begin to look at the ever rising number of overseas students looking towards the UK!
Places at UK universities are much sought after by international students, creating substantial additional demand. The UK has always been extremely welcoming of overseas students with the income stream created by student fees invested back into the system.
Researching purpose-built student accommodation
In reality university cities up and down the UK have proved to be extremely resilient when it comes to property values and long-term rental income. However, there are a number of factors to take into consideration when looking to maximise long-term returns which include:
• Focusing on high quality accommodation including ensuite facilities and studios
• Ensuring favourable locations in relation to nightlife and social activities
• Focusing on high quality further education facilities
• Researching university cities where prime student accommodation is in demand but under supplied
Property Partner has access to an array of purpose-built student accommodation across the UK with particular emphasis on university cities. Only properties which pass a strict criteria test are offered to investors via the company’s investment platform.
Investing in purpose-built student accommodation
The process of investing in purpose-built student accommodation could not be easier. Simply peruse the array of investments available on the company’s website and when you find the one that suits your own criteria you can literally invest at the click of a button. There is a one-off 2% charge (no annual charges) with the company organising everything from mortgages to solicitors, maintenance to resale opportunities.
After investing you will receive your share of net rental income as a monthly dividend with the opportunity to sell your investment at any time or exit at market value after a five-year period. The secondary market, where shares in student accommodation assets can be bought and sold, is very important for those seeking liquid investments.
Capital at risk. The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your Property Partner account, however the investments that you make through Property Partner are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Forecasts are not a reliable indicator of future performance. Gross rent, dividends and capital growth may be lower than estimated. 5 yearly exit protection or exit on platform subject to price & demand. Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary. See Key Risks for further information