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Purpose Built Student Accommodation (PBSA)
Johnny1964
Posts: 4 Newbie
Considering iinvesting in PBSA as this seems a growing sector with sustainable demand. Any positive/negative experiences with this? Also, anyone know of reputable sources/agents? Thanks in advance.
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Comments
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My understanding is more and more students are opting to study at a university close to home to mitigate the costs of studying. I think the demand for student accommodation will decrease.1
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What form of "investment"? The ones advertised where you "buy" a room and get an unfeasibly high yield are probably to be avoided.2
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(Hmmm... I hope you're not spamming.)
Anyway, somebody asked me to look at one of these unregulated investment schemes for them - and it seemed like little more than a scam.
The marketing materials were shockingly misleading.
Lots of enticing headlines - like 5 years rent guaranteed, guaranteed buy back option. But when I read through the 109 page contract, there were so many bear-traps and caveats - essentially, nothing was guaranteed at all.
I suspect that anyone who fully read and fully understood the contract would never invest. I guess they just relied on selling to people who only listened to the sales hype, or relied on the misleading marketing - but didn't read the 109 page contract.
They're classed as 'business to business' investments - so there's no consumer protection, and they're generally completely unregulated.
I guess there might be some more reputable firms in amongst all the bad guys - but it's probably more sensible to go with regulated property investment funds, for example. (Or just buy conventional property in the conventional way, so that you are in control of your investment.)
2 -
" PBSA" what a lovely name for a quick way to give away your savings.
Hands off Investment
Guaranteed 6/7/8% yield when buying a " POD " in a block of student flats.
No need for a mortgage as completely Unmortgageable !
Now if your Children are going to University and doing a 5 year course like medicine then investing in a 2 bed flat " Might just might " be a good idea.
As a " HMO Student Landlord " I would not recommend renting to students or trying to buy a " student property "1
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