New UK Buy to Let Opportunities – Student Accommodation Investment

With the US showing one of the largest declines in residential property values, wise investors are turning to international investment opportunities in hopes of earning capital gains and residual rental income.  If you are a real estate investor and you are reviewing the opportunities available in different regions of the world, consider the benefits of UK buy to let.  Buy to let investment opportunities have become very attractive in the UK.  After the housing price slump, international investors are buying up UK buy to let properties left and right.  Investors in Asia see Britain real estate as a great opportunity to make money.  A newer market international investors are focusing on is student accommodations.  Understand the benefits of taking advantage of a student accommodation investment and earn a steady income overseas.

 

Student accommodation has been labelled “the best performing UK property investment sector”.  In fact, in 2010 these investments outperformed all other property sectors in the region.  If you are looking for the right component to balance your investment portfolio, choose a component that consistently performs.  Student accommodation developments have a track record for maintaining 100 percent occupancy in the UK.  This is unheard of in comparison to other property sectors.

 

 

One of the primary reasons why student accommodations perform so strong in regions like Liverpool is because of the imbalance of supply and demand.  UK student populations are rising and are expected to rise even more in 2012.  Students in a rush to enroll in school before a countrywide fee increase in late 2012 are applying for leasing in developments.  These students realize how important it is to apply for a lease early if they want to secure a lease in time for school.  The application race has translated into profits for investors who invest in developments or who purchase UK buy to let properties in student districts.

 

Between 2002 and 2008, the average growth of rents ranged between 5 and 6 percent.  In 2010, rental income growth rose to 13 percent.  This figure is only expected to rise as more than 700,000 students have applied for admission in UK universities for the 2011/2012 semester.  Developers assure an 11 percent net yield on rental income and almost a 200 percent return on investment within 10 years.  If you are ready to make a wise investment, consider the benefits of investing in student developments and watch your profits roll in.

Tagged As: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

No comments yet... Be the first to leave a reply!

Leave a Reply