Deciding on where to develop student property can be tricky. There are lots of things to consider including the location and the local amenities, both of which are important factors to prospective students looking for accommodation.

Image via University of Exeter under CC by 2.0

Private Accommodation for the Win…

Whilst many universities are able to accommodate all first-year students in halls of residence, the majority of students look for accommodation in the public sector. This may come as a surprise, as one might expect students to want to live right on campus for convenience, however, not all youngsters like the idea of not having a say on who they’re going to live with.

By choosing halls of residence, students are technically throwing themselves in the deep end. They have no idea who they’ll be sharing residence with and whether they will get on with these people or not. For that purpose, students prefer to live with those they have chosen to live with, perhaps with who they have met on social networking groups online prior to Freshers’ week.
Read more: Should I Invest in Property for my Student Children?

 

So, remember, living in privately rented property has its perks. Whilst you may assume that you won’t gain much interest as students will be trying to nab a spot in halls, this isn’t necessarily the case as many students prefer to live in private accommodation.

…Providing it’s Affordable

One thing to bear in mind is that university halls will charge for the cost of the room for the academic year, and most of the time, the bills are included. Therefore, when students look for accommodation elsewhere, the cost may put them off as gas and electricity are typically not included in the price.

It’s important to make your property affordable to students, otherwise you could find yourself with no tenants!

Choose an Area That Has a Seller’s Market…

It’s all very well investing in property, but if you choose an area that has a depressed market, it’s unlikely that you’ll make a long-term profit or generate decent rental income.

Be sure to look at the local student buy-to-let market as a whole before taking the plunge and buying a property.

Image via University of Exeter under CC by 2.0

…And a Renowned University

We know what you’re thinking, how will a renowned university have an impact on you as an investor? However, as a rule, the more established a university is, the stronger the buy-to-let market.

For example, whilst Cambridge students are extremely academic, they’re also cash cows too. Cambridge University is constantly expanding and the city’s population is set to increase by more than 20% in the next decade. As a result, the student rental sector is booming.

And Cambridge isn’t on its own; Oxford is another blue-chip destination if you’re looking for an area to invest in property. This is due to the city being close to London, therefore there is easy access to England’s capital, plus, Oxford has a rising student population.

So, now you know what to consider when investing in private accommodation for students. If you’d like financial advice on property investment, be sure to speak to our team of financial experts.