Smart investors who want to minimise their risk, but want assured rents with high yields should look at the developing Student Accommodation market. The boom in further education is set to continue and the UK, being the second largest importer of students after the USA, is well placed to take advantage of that boom as part of the ‘’services industry’’ that so many people dismiss as ‘not the real’ economy.
Arm chair investors are attracted by the low capital outlay initially, coupled with high guaranteed rental yields (typically 9%) and over time, capital growth of the physical asset owned. Other attractions from an investors point of view, include not having to find tenants, or worry about who manages what, as the Student Market offers a fully inclusive package from turning thy key at completion, to being paid guaranteed rent for 5 years, whether or not there is an occupant.
These days students, especially from the emerging nations, do demand ‘hotel style’ accommodation. Gone are the days of smoke filled squats, in are the days of all inclusive Wi-Fi, Fitted Kitchens, Fat screen TV’s and all the other ‘home-from-home’ comforts. Usually in addition to home comforts inside, there are extensive private grounds to wander around or chill, or even (shock horror) actually do some research/coursework!
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