Real estate investors are usually keen to look into commercial and residential property. They imagine leasing an office to a thriving business. Or they imagine leasing a home to a growing family. But their imaginations don’t tend to wander too far outside of these pursuits.
What other options are there, though, I hear you ask? Well, there’s always the possibility of investing in student property! This is, of course, a type of residential property. But it definitely can’t be handled in the same way that you would handle a regular family home or apartment!
Student properties as investments have become more popular than ever in recent years. In the UK, the sector as a whole is making billions for budding investors. Investments in this real estate market have been soaring recently. Total investments are currently more than six times what they were in 2010 – a very impressive increase over a span of six years! So it’s becoming more and more attractive to those who are interested in real estate investments.
Buying or building?
If you’re looking to buy student property that’s already in place, then that’s probably the easiest route. The established “student cities” like Cambridge, Oxford, and Kent will have plenty of options.
Actually building up your own from scratch will definitely be tougher. And the established competition in those places will be fierce. Still, there’s plenty of demand for this kind of property. You could even look into converting a property into student accommodation. You can get assistance with student accommodation furniture, design, and location.
Considering the mortgage
So how exactly does someone raise the funds for this sort of investment? You probably already know that the type of property you’re investing in can have a big difference on how you acquire the capital. Is getting the money for student property investments more difficult than getting it for others? It can be, but not by much.
You just have to make sure that the lender you want to work with offers mortgages for student properties. A lot of lenders out there won’t lend you the money if the tenants are going to be students. Don’t be tempted to take in student tenants if the terms of your mortgage don’t allow it! You could get done for fraud. Try looking for lenders who offer a wide variety of different mortgage types.
You need to keep your property protected. After all, it’s your investment! If you have direct ownership of the property, you’ll have a lot more sway with what you can do. The problem you may have is that the law may limit your ability to evict problematic tenants.
Still, there are loads of measures you can take to ensure the property is protected. It’s best to keep up to date with the tenants as much as possible. As students, they will probably be doing their fair share of partying and making quite a bit of mess. Don’t get made about it – just make sure they know to clean up and fix any problems!