Modern buildings 'a good bet' for student property investors
21st Feb 2012
People thinking of investing in student property have been advised that modern buildings are their best bet if they are hoping of pulling in tenants and making a profit.
Peter Mindenhall, researcher at IPINGlobal.com, said that the traditional converted semi is not as popular at the moment, due to the increase in rental regulations and requirements, as some older on-campus developments are in need of upgrading.
His comments followed the publication of a report by Knight Knox International which showed that, instead of a decline in student numbers, universities are experiencing an overwhelming amount of applications, something that their existing facilities cannot cater for.
Attracted by this lucrative investment opportunity, considering average rental yields are six to 6.5 per cent, both domestic and overseas buyers alike are focusing on building stylish, affordable accommodation for a more consumer-focused student.
Mr Mindenhall pointed out that, over the past couple of years, the student accommodation market has shifted towards a more commercial offering.
"Now, new-build developments with planning approval and support from the university and local council are the primary things to consider," he advised.
The expert added that some developers will also include management services or companies, which will appeal to more active investors.
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