19 Dec Student Pads – the latest trend in investment property
When most people think of student accommodation, they think of a dark, damp, smelly mess with clutter everywhere and the rubbish bin over flowing onto the kitchen floor. However, the new age of students are evolving and demanding modern, stylish, contemporary accommodation. That is where property investors step in.
If you’re a property investor looking for a new trend, the latest stylish student accommodation is the way forward! Investing in student accommodating is the hottest big business in the UK at the moment with a massive £2 billion ploughed into the sector for the first nine months of 2012 according CBRE, a retail property adviser and they also claim that the returns are impressive too!
There are a huge 84,700 oversees students that live in London and the British Council forecasts state that 30,000 more will arrive by 2020. This means that while most local students are happy to adhere to the typical stereotype, that doesn’t mean foreign students have the same standards. Many oversees students are willing and very able to pay for their home from home piece of luxury with extra facilities and better security, never mind a higher standard of hygiene!
For the property investor, there are some considerable benefits to focusing your investment skills on high end student accommodation. Let me remind you of another typical stereotype of student accommodation, multiple people living in one house however, this trend is slowing dying due to stricter laws on the Houses of Multiple Occupation which was brought into effect in 2004. For many first time landlords, this has been a daunting process therefore, students have been moving into their own individual properties such as pods or flats.
As always, research and location is key to any investment property, after all, you don’t want to turn a cottage located in a small village in the middle of the countryside into a student pad! London is the obvious choice when it comes to providing student accommodation for rich foreign students however it will also be the most expensive when it comes to purchasing your investment property. But don’t panic, there are hundreds of universities across the country that have students begging for better living conditions and have the money to pay for it too!
Students are particularly keen living near to facilities, so be wary of purchasing a property on the outskirts of a town or city that isn’t close to the town centre. Be wary not to invest in student pods because they will be very difficult to get a mortgage on and even more difficult to sell because pods have shared kitchens therefore, can not be sold as anything other than student accommodation.
If you fancy purchasing BMV investment property and turning it into snazzy student accommodation, how about checking out PPS’s Latest Property Deals where you can find many different types of BMV investment property!