Student property has been a hot commodity across the UK for a number of years, with the post-recession investment market leaning more towards exciting new assets instead of tired traditional methods of investment.
It’s for this reason that we continuously see billions invested in the market, be that through landlords buying existing stock or properties in upcoming developments that are planned with students and their needs in mind.
In fact, this year alone, it’s expected that the student property sector will welcome as much as £5.3 billion in investment, and that’s all despite the current political uncertainty.
With an expected swell in investment this year that looks set to outstrip that seen in 2016, investors are going to be facing new competition. More money means more properties coming to the market.
So how do you make sure that you are giving yourself the best chance of success?
When it comes to purpose-built student developments, a successful development will complete in time to cater to the latest student intake. If you buy at the right time, then the chances are you will be up and running by the time the new students are looking for homes for the upcoming academic year.
High demand for new-build rooms
Given the number of students that are going to be looking for property later in the year, it makes sense to make sure that as a student landlord, you are prepared for the rush. Remember, with over half a million UCAS applications this year, there’s going to be a huge number of people looking for somewhere to live, and that’s without taking into account the 1.7 million full-time students already at university last year!
For new investors, buying off plan student property will give you time to prepare and do your research. Look into things like the best cities to buy in, what students are looking for and what the most suitable properties are likely to be before you make the choice to invest.
Purpose-built developments will have a specialist management company in place which will mean that you will not have to advertise you room to students or deal with the day-to-day running of your investment.
Many developers aim to complete their building in time for the new academic year and advertise rooms to students in advance. If the location, onsite facilities and the price all appeal to students, you will secure a great income from your chosen investment.
Secure the right stock
Due to the fact that the success of student property is no secret, there’s always going to be strong demand for student properties in the best performing cities and developments. For those who want to make sure they don’t miss out on the properties that will give them the best returns, it can be a great idea to look into investment sooner rather than later.
New purpose built student developments in cities like Liverpool, Leeds and Manchester are always going to face demand, and many units will be sold out long before launch day. So, it pays to not wait too long. Get yourself at the head of the queue and make sure you have put yourself at the head of the queue for the most popular stock by investing as early as you can.
Resales are also a great option if you wish to invest in a purpose-built student property which is operational and already generating rental returns. Due to the stable returns the sector produces, investors tend to hold onto their stock however, resale student rooms provide an alternative to those who want to skip the construction phase.
Ahead of the competition
The student property market, as we know, is a very lucrative one indeed, many buyers will be swayed by the potential of getting returns of over seven per cent in the student market.
As students start to look for somewhere to live, those who are perhaps not well versed with the market see a new avenue for making an income from the HMO market.
This can cause something of a rush in the market, however, and while those who are coming to market at this time will face a bit of a hectic time of buying, preparing and listing stock for rent – especially for private HMO listings.
Those who have purchased earlier in a purpose-built development which have been designed to complete on time and have management companies with a strategic marketing plan to advertise to students, will be ready to go, and will be able to make sure they secure tenants ahead of the competition.