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Student Accommodation. A good investment opportunity?


Charles07

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My first post. I am considering my first buy to let and doing some initial research. I have come across companies offering ‘student accommodation’ investment opportunities near universities. At a very modest investment of around £50k. The returns are around 9 to 10% net with guaranteed rental income with a fully managed service. No worries about tenants etc…

This sounds very tempting. Has any body looked into these and I would appreciate any advice and comments. Getting a loan will be a problem but except for this it sounds very tempting. Thank you

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I always work on the basis that if it seems to good to be true then it probably is.

This approach may of course mean that I miss out on a few extremely good bargains but it also means I avoid loosing large amounts of money.

My approach seems to have worked so far cos its made me rich.

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I think if you can do a lot of any repairs yourself and be prepared for heavy wear and tear have a very good agent in place it can work.

I personally stear clear of them as I dont do HMO's or student lets.

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There was an article on this scheme in one of the quality newspapers last December and it would not have filled me with any confidence as the financial returns figures just didn't add up.

Personally I wouldn't touch a scheme like this with a barge pole and like Richlist my 30 years of hard graft have made me rich without having to enter into schemes that from my experience have always made other people "rich".

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The trouble is Charles if you hadn't noticed, now that tuition fees are compulsory there are not so many students and therefore less accommodation needed - in fact a student block in my town is almost empty now- whereas as it had been full of 'media studies' wasters running up debts for their parents to pay off.

I would tread very carefully - we get at least one of these get rich quick schemes every month. It should come with a government health warning.

Mortitia

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.........and some student accomodation is a really POOR investment opportunity.

Apparantly there have been lots of fantastic investment opportunities over the last few years.....Northern Rock, Woolworths, Jessops, HMV, Comet, Blockbusters, All the Banks etc etc etc.

I've spent half my life without money and the other half with lots of it. I've learnt that almost everybody I meet has some ridiculous, sure fire way to want to help me make more and to do it they will try to relieve me of what I already have.....BEWARE.

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  • 2 weeks later...

Why is getting a loan a problem? There are lenders who will consider lending in your scenarion. PM me if you want to discuss further.

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