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Student apartment investment
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JohnLock
Posts: 74 Forumite
Hello,
There are lots of student apartments on the market labelled as 'investment opportunities'. They cost between £40-£70k, usually single unit studio apartments in a big modern development, and say that you can earn around £3,500 net annual return, after fees.
Are these types of investments too good to be true? What is the small print or limitations? Thanks.
There are lots of student apartments on the market labelled as 'investment opportunities'. They cost between £40-£70k, usually single unit studio apartments in a big modern development, and say that you can earn around £3,500 net annual return, after fees.
Are these types of investments too good to be true? What is the small print or limitations? Thanks.
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Comments
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After what fees?
Have you taken into account the fact the lenders don't usually like studio flats, ground rent, freeholder charges, repair expenses, a 3 month void every year (as you're renting to students), non-paying tenants, CGT exposure, additional SDLT and all of the 101 other expenses that come with being a landlord?0 -
Hmmm, net indeed. Net of what. Net of damage done by this year's students before it's re-letable? Or just net of agents fees?0
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I'd check the posting history.0
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But these apartments include additional costs incurred0
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Are these types of investments too good to be true? What is the small print or limitations? Thanks.
If you read and fully understand all the terms of these unregulated investment schemes...
... I'm pretty sure you wouldn't invest.
With most of these schemes, it's only really naive punters who don't understand the terms and the risks involved who invest.0
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