Are you interested in investing in student property, the UK’s strongest asset class? Make sure you make the right investment by reading Select Property’s top five tips on what to look out for.
Location, Location, Location
Many student developments claim to be situated in prime locations but are actually on the outskirts of towns and cities. Anything other than prime city centre space is not worth your time as students care about a convenient location above all else, with a recent NUS report stating that 56% of students say that location is the main deciding factor when choosing accommodation. Find out exactly where the project is located and make sure what you are buying is close to the University AND the local bars, shops and transport links.
Quality is king!
Today’s students aren’t looking to skimp on the home comforts, much the opposite in fact. Students pay a lot to go to university and consequently they want quality and security. There has been a significant increase recently in demand for quality accommodation and the amount students are willing to pay. Many developers claim to offer ‘luxury’ but the reality can be quite the opposite. Make sure the accommodation you are buying has all the mod cons and the high-specification finish that is desired by the market.
Build it and they will come…?
These days, students are savvy consumers and they want a high level of service to accompany their accommodation. Who manages your student property? How do they intend to make the student experience exceptional? Don’t be fooled, students talk and if you want your property to be rented year after year you need more than just a ‘management company’, you need a student service provider that is dedicated to looking after the tenants.
You pay for what you get
If it’s cheap it’s for a reason! How comfortable do you feel about spending less and potentially putting the long-term security of your investment at risk? A cheaper product may save you money in the short-term, but it is less likely to rent year after year, jeopardising your income in the long run. To get location, quality and service you will have to pay more however, you will also gain peace of mind that you have invested in sought-after property that will ultimately reap higher returns.
The end game
What routes to market can you use to sell your student property investment? Should you need to sell at any point or you simply want to realise the capital from your appreciating asset you need to know your way out. Can your property be re-sold? Who will buy it? Who will sell it for you? If the developer hasn’t thought about your exit, then they aren’t thinking about your longer term interests. But if they guarantee to buy it back after a certain period then beware! This is a gimmick.
Do you want to find something that ticks all of these boxes? Then speak to Select Property for more information about accommodation provider Vita Student. You can even book a viewing at one of the show apartments in London, Liverpool, Manchester, Southampton, Bristol or Exeter so you can see the type of properties available first-hand.