Why is a Student House a Good Investment?

The idea of buying a student house is enough to send some would-be buy-to-let investors back to a day job. But before you rule it out as a bad idea, think about the potential yield.

As a rule in property investing, flats or apartments provide a better return on investment than houses. They are generally cheaper to buy and rents are relatively high. A typical three bedroom semi-detached house should achieve about the same rent as the much cheaper to buy, two or three bedroom flat. student housing lancaster

The great exception to this rule is when the house tenants are sharers, instead of a family. The most common example of this is student accommodation…The Student House! As students pay rent on a per room basis, the overall rent for a student house is considerably greater than you could expect for the same house let to a family. Hence the exceptionally high yield from student lets. A student house is a great buy to let investment.

Every year in September, university towns and cities throughout the UK, will be welcoming hordes of eager young students moving into their accommodation for the new academic year. While many freshers (first year students) will move into university halls of residence on campus, most second and third year students will need privately rented houses. Without the private rental housing sector most universities would be unable to accommodate their students.

As the government initiative to increase the number of people going into university education expands every year, the opportunities for the private landlord to tap into this lucrative market are considerable. Suddenly, the student house sounds a lot more appealing.

Leave a Reply

Your email address will not be published. Required fields are marked *