Student property is the fastest growing asset class in the UK property market. The continued high demand from students for good quality accommodation offers investors a great opportunity to maximise rental yields and there is also a buoyant second-hand market.
However, with an increasing amount of student property coming to the market, itÃ¢â¬â¢s important that you undertake your research before you buy. So, we outline three key questions that you should ask before investing in student property.
Does the development have planning permission?
Not all student developments will have planning permission at the start of the buying process. Some properties will be offered for sale before full planning permission has been granted.
If youÃ¢â¬â¢re considering such an investment, you should bear in mind that any deposit you may put down to reserve a property may be non-refundable. If planning permission is refused, you may lose any money you have put down.
Using a trusted seller can help minimise this risk. For example, we ensure that investors are given full disclosure on the status of all developments, ensuring that youÃ¢â¬â¢re fully informed at all times.
Is there a demand for student accommodation in the area?
If youÃ¢â¬â¢re looking to make a student property investment then itÃ¢â¬â¢s important to know that there will be a demand for the property.
Make sure you research the area to establish that there is a lack of high quality student accommodation and a large and growing student population.
Universities are struggling to cater for the high volume of students they receive each year and so many towns and cities need private student accommodation to meet demand. Make sure there is such a demand in the area in which youÃ¢â¬â¢re buying.
When will the development be ready?
You should check that there are defined completion dates for the student property that you are buying. If you donÃ¢â¬â¢t, you may find that construction may overrun and you miss the intended student intake.
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