Cookies on the Investment International website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to Investment International?

Welcome, and thank you for visiting our website.

Investment International is the leading publication for investors interested in the world of international investment.

Our aim is to give you intelligent commentary on the most important financial stories, and help you to profit from them. If you've enjoyed what you've read so far why not sign up for our FREE investment alert.

Every week the Investment International team sends out a hard-hitting newsletter packed with news and analysis of the top stories this week plus the best investment opportunities on the market. We always look at the bigger picture like the Eurozone Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Students make the perfect investment PDF Print E-mail
News - Property
Monday, 16 July 2012 12:54
If you are thinking about becoming a landlord then there is one sector you shouldn’t ignore - student accommodation. Ranked by The Times as the top asset class in the UK’s property market, the sector has rapidly outpaced the UK’s conventional buy-to-let market.

In fact students generated the highest yields for landlords in 2011 according to recent research carried out by buy-to-let mortgage specialist Paragon Mortgages. Using independent research from The Landlords Panel from BDRC Continental, the lender found that students generated an average yield of 6.45%; the average yield across the market currently stands at 6.2%.

Demand for student accommodation is set to increase further, especially with an influx of students from overseas. The number of international students opting to study in Britain has risen since 2006 to nearly 300,000 and this has led to a change in the face of the student property market. The stereotypical low-quality house shares are being overlooked in favour of high-quality studios and apartments.

This trend has been highlighted by the creation of a new premium student property brand, Vita, which launched its first project, Vita at The Chapel, in March. The fact it completely sold out in just a matter of weeks is no surprise as Vita projects offer investors a unique UK property investment in a very strong and growing market.

Following the sell-out success of their initial project, Vita is launching its second project, Vita at Tinlings. This project is similar to The Chapel in that it offers extremely high quality student property in a city centre location with assured returns for first 2 years and is 7 years fully managed. This means that the investment is totally hands-free and the management company will do anything from locating tenants, sorting out rents and contracts and taking care of any maintenance. However it also offers purchasers the option of a six year non-status payment plan. With only 50% of the list price required prior to June 2013, investors on the six year plan then pay the balance in fixed quarterly instalments. Alternatively, investors can opt for the standard plan and pay the remaining balance on completion.

Commenting, Mark Stott, CEO, Select Property, master sales and marketing agent to Vita, said: “Most people associate buy-to-let investment with the purchase of one to two-bedroom flats and trying to make single figure returns on the residential rental market. However savvy investors now associate UK property investment with the rapidly emerging student accommodation sector which is providing extremely healthy returns.

“The popularity of student accommodation amongst investors is ultimately driven by consistent occupancy rates of 99% or higher and a structural undersupply, particularly for higher quality accommodation. And this is set to increase, potentially offering even greater return.”

This notion was backed by Knight Frank’s 2012 student property report which read: “It [student accommodation] has outperformed every other commercial property class and delivered consistent returns throughout the economic downturn.”

So don’t miss out. Download your free guide here.

 

Most Read

Latest Guides

New Build UK Student Investment
New Build UK Student Investment
Download

UK Airport Car Park Investment
UK Airport Car Park Investment
Download

UK Airport Car Park Investment
Hever Hotel
Download

Holiday Home Rental Guide
Holiday Home Rental
Download

Investing in Buy-to-let
Investing in buy-to-let
Download

Investing in buy-to-let
Investing in buy-to-let
Download

Discover the real power behind your pension
Hever Hotel
Download

Self Invested Personal Pension Guide for UK Expatriates
key
Download

Offshore Banking Guide
Offshore banking Guide 2010-2011
Download
Pension Planning Guide
International Pension Planning Guide 2010-2011
Download
Eurozone Crisis
Eurozone Crisis Report 2010-2011
Download
Tax Guide
International Tax Guide 2010-2011
Download
Follow us on Twitter
Find us on Facebook