Investing in real estate means that you should always be flexible in whatever the market will offer you. Whatever that is trending, an investor should also see to it that he could be able to adjust with it. There are many ways on how to acquire wealth or sufficient returns from the investment in real estate, and one of which is through student housing. Financial Times even stipulated that student housing is a top property asset.
The said real estate investment is a good choice among investors in the UK, for more and more young generations are wanting to have a degree and more and more campuses are built in order to cater the said need. And because of such movement, investors are also maximizing their investments in order to put up student houses to accommodate students all over the region.
Based on the report of colordarcy, there is an increase of 14 percent in total returns from student property and an increase rental growth of 3.5 percent this year. And this is why most investors are going for student properties rather than other real estate investments. The demand is clear and the returns are more enticing than ever.
This form of business has been very attractive because of an occupancy rate up to 99 percent. And based on the recent report by Knight Frank, a residential and commercial property consultancy founded in London, "It (student accommodation) has outperformed every other commercial property class and delivered consistent returns throughout the economic downturn."
And perhaps a testament to its ever growing market is the 4.2 billion of investment in the particular market of real estate in 2015. Colordarcy reported that most investor are "are chasing average net yields of 7% or higher on student property in the best UK locations." It is said so mainly because landlords or property owners are leasing their properties to students as per-room basis rather than the usual per-property basis.
