Subscribe to our monthly newsletter

Get the knowledge and inspiration you need to help you build
a profitable portfolio - straight to your inbox!

Student accommodation

Can buying off plan property boost your income portfolio?

Author: Gemma

A

A

A

A

There has been an upward trend in student accommodation investment in the UK but for those looking into off plan property opportunities, considering where to invest money could make a real difference in the performance of your investment.

Buying off plan can allow investors to secure brand new property at today’s price, meaning that you don’t need to worry about rising property prices and it becoming more and more expensive during the time a property is being built. It may even present possible capital growth potential.

As prices rise, so does rent, meaning that your yields could be stronger in a few years’ time too.

Location: Unlock your money’s potential

If you are considering purchasing an off plan property, deciding on the location is an important factor and may dictate the performance of your investment.

When considering where to invest in the student market, investors should look at demand for rooms, the student population and how close the development is to the higher education establishments.

Liverpool, for example, is a prime candidate for those purchasing off plan student accommodation.

Boasting a student population of over 50,000, 12% of Liverpool’s total population is made up of students.

Home to 3 main universities – The University of Liverpool, Liverpool John Moores and Liverpool Hope University – and LILA English Language School, The Liverpool Institute for Performing Arts (LIPA) and Liverpool School of Tropical Medicine, Liverpool one of the UK’s largest and most popular university cities.

Highlighting the demand for rooms, the main 3 universities have also seen a rise in applications.

Off plan student property investment opportunity

Norfolk House is a new UK student property investment which is located in Liverpool’s Baltic Triangle – an area which has seen a heavy influx of investment.

Known as a bustling centre for students, the development is close to Liverpool’s city centre and is in close proximity to the city’s 3 main universities.

Exclusive to London-based property agent, Experience Invest, Norfolk House is a new, off plan student property investment which will provide investors with a 3 year rental assurance of 10% NET returns per annum.

Investors can purchase one or more modern self-contained studios which will then be leased back to a well-established management company on a rolling agreement. Planning has been granted for multipurpose use, enabling the rooms to be rented to students, graduates and young professionals.

Although Norfolk House is an off plan opportunity and investors will have to wait until it is completed to start receiving the 10% annual yields, income will be earned from day one as 4% interest is paid on deposited funds.

Each self-contained studio apartment is available for £62,500 with a favourable payment plan spread across the duration of the construction phase.

So can off plan property boost your income portfolio? In general, not straight away, as most opportunities will start yielding after they have been built but once completed they will have scope for higher and rising rental returns.

However, with 4% interest paid on deposited funds, Norfolk House presents a great opportunity for investors to receive an immediate passive income from their off plan purchase and secure assured rental returns for the first 3 years of the investment.

For more information about buying off plan student property or if you would like to request more information about Norfolk House, contact Experience Invest today on +44 (0)207 321 5858, email enquiries@experience-invest.com or visit experienceinvest.com. href””

You may also like: