Everyone wants to make money in property - that's why they do it. But people who have had their fingers burnt in the last recession seem to be making the same mistakes by buying property in their local area which turns out to be more of a hassle due to managing tenants, dealing with void periods and worried about low yields. In other words, the investment is not passive at all, but rather a headache!
The answer? Invest in student accommodation!
Student accommodation has always been one of Property Horizons primary recommendations to any investor, whether you're looking to add to your existing property portfolio, or if this is your first ever property investment. Our reasoning for this is quite simple: it's a low risk, high yielding and totally hands-off investment and our clients have profited hugely over the last five years from following our recommendations in this sector.
With the UK government a 12% rise in applications for 2011-2012 and a huge national shortage of student accommodation, this is still a perfect time to take advantage of current investment conditions. With high rental yields (typically between 10-13% gross yields depending upon the property type) and totally hands-off, hassle-free ownership, student accommodation ticks all the boxes.
Still not convinced?
Knight Frank has reported through their own independent research, that only 50% of all students in the UK have access to high-quality purpose-built student accommodation. This figure drops dramatically to 20% when you compare the student/purpose-built housing ratio in London alone. This means that there are nearly 100,000 students in London who do not have access to purpose-built student accommodation, helping to create a huge demand in a market with very limited supply, ensuring rents remain high and your property stays tenanted.
Other benefits of investing into the student property sector are:
Cash-positive, long-term investment - typical rents are significantly higher for student properties than a comparable BTL property in the same city. As a result, mortgages can often be paid off in 20 years or less from the net rents received.
More people attending universities, creating a solid and sustainable demand - student numbers are set to continue to rise in coming years - especially in London which has the most students of any city in Europe and the most international students of any city in the world**. Other cities with large student populations include Manchester, Leeds and Sheffield.
Minimal voids - tenanted for almost all of the year and you typically know seven months in advance that your property is tenanted for the next academic year due to pre-lettings.
Hassle-free investment - private halls are managed by on-site management teams who will handle all bills and ground rent, meaning you only have two outgoings: mortgage and management fee.
Rental income has increased by 5% each year for the past six years in the student accommodation property sector. In 2009, many schemes actually achieved 10% gross rental increases.
-Student property has continued to be one of the most resilient investment sectors in the UK during the economic downturn, with most rental incomes and property values remaining stable or increasing.
-New build properties available - houses and/or flats, as well as refurbished houses.
Exit strategies - although we recommend student accommodation as long-term income investment, long-term provable high income on a property makes a property much more saleable. Converted HMO houses can also be converted back for residential use as an alternative. Standard apartments near to university campuses can be sold for traditional residential purposes.
All of this helps to reduce the risk to the investor! So if you are looking to invest your hard earned money it property, don't discount student accommodation for its low risk, hand free nature and more importantly of all, it's massive income potential for you.
Straipsnis Šaltinis: http://www.articlesphere.com
Susiję straipsniai investuoti
Žmonių, kurie domisi pirmiau minėtame straipsnyje taip pat domina toliau išvardyti susiję straipsniai:
Ar manote, kad jūs galite visus savo svajonių išsipildymas investuojant į aukso? Jums galėtų papildyti savo pasitraukimą, bet tik tada, kai žinote reikiamą informaciją. Šis straipsnis yra visiškai puikus patarimų ekspertų.
Kodėl, kai jo draugas sakė, jis žiūri į investicijos Japonijoje ir veltinio šalyje galėtų grįžti geresnėmis grįžta kartu su vidutinės rizikos, George sakė vienas žodis: "Kinija". Kinija pralenkė Japoniją pasaulyje antras pagal dydį ekonomika ir apie 15 metų, Kinijos ekonomikos yra tikimasi iš ekspertų pasaulyje pagal dydį ekonomika. Aišku, Azijoje, ji tapo pasakojimas apie du miestus. Nors Kinija ir toliau pranešti – dviženklio skaičiaus bendrojo vidaus produkto (BVP) augimo, nepaisant kai kurių gesimas, Japonija yra kovoja kartu ir negali augti.
Ten buvo daug susijungimų ir įsigijimų kalnakasybos pramonės pastaruoju metu ir konsolidacija vyksta tik su aukso per $1,800 uncijos ir sidabro daugiau nei $40,00. Pirkimo ir pardavimo visą bendrovės priduria kalnakasybos sektoriuje patrauklumą su galimo perėmimo iš savo ūkių priemoka kaina premijų.