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Buyers Advised to Target Boutique-style Investment Property

June 6, 2011

Student Housing can be the Perfect Investment Propertystudent housing

Investment property can be an appealing option to those with cash ready to be placed in a particular fund or looking to buy a business.

However, it may pay off to choose slightly unusual buildings, particularly if buying with the intention of letting it out, advised Marcus Roberts, director of student investment and development at Savills.

He said that there are a number of “untapped areas” for investors to enter, such as student housing with a twist.

Small, boutique-style homes – ideally located close to main university campuses – are said to be a particularly shrewd investment.

“Now, because of the residential market, you are seeing opportunities closer in to university campuses that otherwise would not have historically stacked up for student housing,” Mr Roberts stated.

The result of this is a drift of students from traditional accommodation, including terraced housing, to something a little a different.

It is also suggested by the expert that it is becoming more important to provide students living in a commercial property with the latest mod-cons, so newer buildings can often be a better option for buyers.

One benefit of choosing investment property that is suitable for students is the potential for significant rental income.

Those in higher education tend to accept living in large groups – sometimes of five or six – and will pay for a room each, maximizing the return on investment.

“Boutique-style investments closer into university campuses offer the opportunity for something different to the institutional product that in many locations has been developed to date,” concluded Mr Roberts.

However, there is no time to waste, as Let Students recently revealed that many young people in education secure their future homes some time in advance of moving in.

Its research found that a significant number have already lined up addresses for the 2012-13 academic year, which is still 15 months away.

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