Buying a student house..

StudentParent

We are in the very fortunate position of being able to afford to buy a property outright, no mortgage. We also have a student son looking for a house to share with friends for the next two years and have the prospect of paying his rent.
We can afford to buy the suitable property, and then charge a fair rent of the other students (and would like to think we would be fair landlords).
It all seems to make sense to me (my mother always said there was money in bricks and mortar) but my partner remains to be convinced.
What are the potential pitfalls/costs? Can this really be as beneficial as putting the money away for the future?

anselld

Being a landlord isn't easy money despite what some may think.
Being a remote landlord is harder.
Being a remote student landlord is harder still.
Being a remote student landlord with family tenants ....

Lord_Baltimore

It's doable provided you buy the right property in the right area and after you have read this.

The returns on cash are terrible and a student property is a good investment subject to proper research.

Pixie5740

Do you want to be a LL? Do you know and understand what this entails? Would this property be classed as a HMO?

What kind of yield are you looking at?

How would the tenancy be set up? All 3 of them on a joint tenancy? Just 2 of them? Would your son pay rent?

booksurr

what is the exit strategy in your business plan?
you do have a business plan, don't you??

after 2 years when your son has graduated and moved elsewhere for work what then? Will the buying and selling costs be covered by capital growth in only 2 years or do you intend to remain student LL in that location ?

Don't forget capital gains tax and income tax!

Lord_Baltimore

Pixie5740 wrote: »

Have a read through this.

Malformed link but already posted earlier

Pixie5740

Lord_Baltimore wrote: »

Malformed link but already posted earlier

I haven't figured out how to turn links to other web pages as a link with a shorter name yet. I'm not even sure what you call it. I tried using the "insert link" button and I ended up with a malformed link.


Your link was so small that I missed it completely. In my defence though I hadn't had my first cup of tea of the day when I wrote my reply.

Lord_Baltimore

Pixie5740 wrote: »

I haven't figured out how to turn links to other web pages as a link with a shorter name yet. I'm not even sure what you call it. I tried using the "insert link" button and I ended up with a malformed link.

Copy the link to your clipboard. Highlight the 'shorter name' in the post you're drafting then open 'insert link'. Paste the link you copied to your clipboard into the dialog box. Hey presto, the 'shorter name' becomes a link.

Note: the malformed link was because in the 'insert link' box the http:// protocol is already there; when you copied G_M's link in you doubled up with the [url]http://[/url]. Make sure you paste over it. We've all done it.

Pixie5740 wrote: »

Your link was so small that I missed it completely.

That's not the first time someone has said that to me .