If you are looking to invest in UK property then consider student accommodation.
Article 50 has been triggered. The UK will leave the European Union. The sterling has been at an all time low. Good news for overseas investors wanting to snag a bargain thanks to the favouring exchange rates.
UK property holds a certain status. But aside from this it has proven to be a lucrative investment asset. The legal system is transparent. It is politically and economically safe despite any stirs caused by events such as Brexit. It is a safe haven than consistently proves its worth as a good place to invest.
However due to rising prices much of the property in the UK is out of reach for many investors. There is the option of buying property as part of a syndicate however more recently student accommodation in the UK has become a preferred investment option.
The UK is home to some of the leading universities attracting attendees worldwide. With not enough university owned accommodation available, many developers have ceased this opportunity building units ideal for occupiers who prefer a good quality home with 24 hour security and lift access.
Why this market?
1. Values are low.
Buying a single room is much cheaper than buying a whole property. Therefore less funding is needed and you can even add to your portfolio if you wish.
2. Hassle free.
Many developers offer to manage the property as part of their services. This includes fixing any repairs and sourcing a tenant making for an effortless investment. Plus often the rent is guaranteed with a high rental yield.
3. Demand is high.
The UK has an acute housing shortage. Plus on top of this records reveal that there were over half a million university students in the UK in 2015. This number is expected to have increased, but either way it shows the sheer pressure on housing.
4. Students can be model tenants.
If you are aiming for the international student market then it is worth remembering that many of these students have paid a fair amount in tuition fees to attend university overseas. Thus they are more likely to be studious and good tenants. Many of whom pay six months rent in advance.