Investing in student property

ThomasAshall

Currently weighing up investing in a studio apartment/flat in Liverpool. So far it seems as though a lot of the developers have buy back clauses which I want so stay clear of. Also some appear to have a chosen letting agent who manages it all which again isn't ideal.


Anyone had any experience in student lets? Any input would be appreciated this is just a brainstorm at the moment

bobbymotors

I am a BTL student landlord in the SE

It is NOT money for old rope!

Upsides...they have no interest in staying on past the end of the tenancy, so rare to need a S21..if you get parental guarantees you rarely need a S8 either...the house is normally empty in the summer holidays meaning you can get in and refurb where needed without any tenancy voids

Downsides...if you have a group of 4 in a house, there will always be one that is trouble in some small way...have had dropout from uni meaning parents have to pay for empty room, late rent every month, you will need new beds every 3 or 4 years, same with furniture. The house will only rarely be cleaned, they rarely forward any post, carpets will get stained...

However it is rare to get a tenant from hell...and you have to understand that they are away from home for the first time and have no concept of running a house.

Personally I wouldn't buy a student flat, much prefer a house.

UrbanDanceSquad

ThomasAshall wrote: »

Currently weighing up investing in a studio apartment/flat in Liverpool. So far it seems as though a lot of the developers have buy back clauses which I want so stay clear of. Also some appear to have a chosen letting agent who manages it all which again isn't ideal.


Anyone had any experience in student lets? Any input would be appreciated this is just a brainstorm at the moment

All dependant on the continuation of the Student scam. Note that .gov.uk are very keen to sell off student loans.

Your business plan is dependent on debt and most likely double debt with you getting into debt and you relying on others to get into debt to pay your debt and/or profit. Sooner or later, the pyramid scheme will end.

You're about 20 years too late with this idea.

Pixie5740

Do students want to live in studio flats? When I was a student part of the fun was communal leaving.

I'm also not sure that studio flats make particularly sound investments unless they're in Zone 1 if Location, Location, Location was anything to go by.

dimbo61

So you have the CASH to buy an overpriced studio flat in a block in Liverpool which you hope to rent out for what £130/150 a week for 50 weeks of the Year before Management charges !
You are buying a POD and will struggle to get a mortgage or resell in a few years when you need to cash in your investment.

kinger101

If it's a purpose built student flat, run away....

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10852153/Student-digs-offer-a-harsh-lesson-for-investors.html

http://www.whatinvestment.co.uk/financial-news/markets/2480292/is-student-accommodation-a-good-investment.thtml

eddddy

As Kinger101 points out, it doesn't sound like you are asking about buying a BTL property - it sounds like you are thinking about investing in an investment scheme (where you notionally 'buy' a room in a student hall of residence).

These are unregulated investment schemes, you need to be a very sophisticated investor to consider these.

You could lose more than 100% of your investment.