Student Accommodation Investments: Everything You Need To Know

Investing in student accommodation can achieve high yields if you strategically choose the best place to invest in. This article will discuss the best places to invest in student accommodations that are currently experiencing the highest returns, and also introduce a prime purpose-built student accommodation investment, which provides investors with the opportunity to capitalise on the burgeoning demand while providing a guaranteed 7% net yield over a ten-year period.

What Is Purpose Built Student Accommodation (PBSA)?

Purpose Built Student Accommodations (PBSAs) are a favoured investment avenue for developers and investors in the UK market. They offer modern living spaces tailored specifically for students, typically composed of cluster units or self-contained apartments.

Student accommodations often come equipped with shared facilities such as study areas, social spaces, and gyms, enhancing the overall student experience.

Unlike many university halls or social housing options, PBSA developments are not classified as HMOs (Houses in Multiple Occupation) under legislation, providing a distinct investment opportunity in the property market. Back to Top

Is Student Accommodation A Good Investment?

Is student accommodation a good investment? In short, Yes. The UK’s student accommodation investment market is currently experiencing a significant surge, driven by a growing influx of students each year. This increased demand has created an imbalance between the number of students and the availability of student beds, presenting a lucrative investment opportunity.

The demand for purpose-built student accommodations (PBSAs) is particularly notable among Chinese and American students, contributing to the flourishing student property market in the UK.

One attractive aspect of investing in PBSAs is their affordability compared to traditional buy-to-let properties. Investing in student accommodation through investment companies, such as Advantage Investment, often offers assured rental returns for several years, providing a stable passive income stream for investors.

Additionally, the combination of low property prices and high rent, driven by premium facilities, results in high rental yields, further bolstering the attractiveness of student accommodation investments.

In short, considering the growing demand for student accommodations, especially in northern cities like Liverpool (further explanation provided below), and the favourable investment conditions such as assured rental returns and high rental yields, investing in student accommodation presents a compelling opportunity for investors seeking stable returns in the UK market.

Click here to read our extensive content with exact figures on the UK’s PBSA market Overview. Back to Top

Why Invest In Student Accommodation?

Investing in student accommodation presents a compelling opportunity for investors seeking stable returns and long-term growth. There are many reasons why student accommodation investments are different to traditional buy-to-let properties, with advantages such as a hands-off fully managed investment, high demand, significant income potential, affordable entry, assured returns, and capital growth potential.

While you can read our detailed analysis of the 6 reasons why student accommodation investments are increasing in popularity, here is a short summary:

Fully Managed And High Demand

Student accommodations are typically fully managed and experience consistent demand, particularly in university cities, ensuring a reliable stream of tenants, unlike the hands-on nature and fluctuating demand often seen in traditional buy-to-let properties.

Affordable Entry And Higher Rent Potential

Student properties often have lower entry prices and students often pay higher rent for properties close to universities, making student accommodation investments more lucrative in terms of rental yield compared to traditional buy-to-let properties.

Capital Growth Potential And Assured Returns

Investing in student properties offers potential capital growth, particularly in areas of increasing demand, similar to traditional buy-to-let properties. Moreover, many student properties offer guaranteed rental income for a set period, providing investors with stable returns, whereas traditional buy-to-let properties may face periods of vacancy or rent arrears. Back to Top

What Is A Good Student Accommodation Investment Yield?

When considering student accommodation investment yields, it’s essential to understand that they often surpass that of traditional buy-to-let properties. Developers often entice investors with NET returns of 6% or higher for up to 5 years, making student accommodation an appealing option for many.

Gross rental yields for traditional buy-to-let properties in the UK can vary widely, typically ranging from 2% to 12%. However, higher yields in traditional buy-to-let properties may come with increased risk, as landlords may need to invest heavily in furnishing properties and pay high management fees.

7% Net Yield For Student Accommodation

In contrast, student accommodation investments offer attractive yields with fewer associated costs and hassles. These properties are typically fully furnished and managed, providing investors with a hassle-free investment experience.

For instance, with Advantage Investment, investors can expect a guaranteed 7% NET yield on our latest student accommodation investment for a 10-year period, without paying management fees. This offering exceeds the industry average and ensures stable returns over an extended duration. Back to Top

Where Is The Best Place To Invest In Student Accommodation?

When considering the best place to invest in student accommodation, northern cities like Liverpool provide advantageous investment conditions, including higher rental yields compared to London and attractive property prices.

Additionally, student property investments in northern cities offer benefits such as no stamp duty, assured rental income for up to 10 years, and fully managed properties, making them an ideal choice for investors seeking stable returns and hassle-free investments.

Liverpool Student Accommodation Investment

Liverpool stands out as the premier location for student accommodation investments due to several key factors including its top universities, international student appeal, thriving nightlife, future investment prospects and secure returns.

Click here to read our analysis supported by figures on why northern cities, particularly Liverpool, is the best place to invest in student accommodation. Back to Top

How To Invest In Student Accommodation?

Investing in student accommodation can be a lucrative venture, but it requires careful consideration and planning. Here are steps to guide you through the process:

Research And Understand The Market

Start by researching the student accommodation investment market in your desired location. Understand factors such as demand, rental yields, vacancy rates, and student demographics. Look for areas with a high concentration of universities or colleges and a growing student population.

By reading our comprehensive articles and investment guides on student accommodation investment, you should possess a thorough understanding of the market.

Set Your Investment Goals

Determine your investment goals, whether it’s rental income, capital appreciation, or a combination of both. Clarify your budget and risk tolerance to guide your investment decisions.

Contact us to speak with our team of property investment consultants to receive personalised advice on informed decision-making and how to maximise your investment opportunities.

Choose The Right Location

Select a location with a strong demand for student accommodation and favourable market conditions. Consider factors such as proximity to universities, public transportation, amenities, and the local rental market.

Manage Your Investment

Once you’ve acquired student accommodation properties, effectively manage your investment to maximise returns and minimise risks. Consider hiring a property manager or management company to handle tenant relations, maintenance, and administrative tasks.

Monitor Market Trends And Diversify Your Portfolio

Stay informed about market trends, changes in student demographics, and regulatory developments that may affect your investment. Regularly review your investment portfolio and adjust your strategy as needed to optimise performance.

Consider diversifying your investment portfolio by investing in student accommodation properties across different locations or asset types. Diversification can help spread risk and enhance long-term returns.

At Advantage Investment, we offer up-to-date information through our articles and guides, providing valuable insights for investors. Additionally, our investment experts continually source diverse investment opportunities worldwide, ensuring our investors have access to a range of options tailored to their preferences and objectives. Back to Top

Buying Student Accommodation As An Investment: Camden House Liverpool

Liverpool’s dynamic student community and the surge in university enrolments have sparked a soaring demand for purpose-built student accommodation (PBSA). Among the developments poised to address this demand is Camden House, an enticing project offering exceptional value to Liverpool’s student accommodation market.

Student Accommodation Investment For Sale UK

Camden House presents an unparalleled investment opportunity in Liverpool’s thriving student property market.

Prime Location Advantage

Strategically positioned in Liverpool city centre, Camden House boasts an unbeatable location within walking distance of several prestigious universities. This central setting is a significant draw for students seeking easy access to academic institutions and city amenities alike.

Lucrative Investment Potential

Camden House stands as a premier investment opportunity in Liverpool’s student property market, offering numerous advantages for investors looking to capitalise on the rising demand for student accommodation including:

• Accessible entry and stamp duty savings
• Guaranteed returns of 7% NET yield for a 10-year period without paying management fees

With its accessible entry, guaranteed returns, and strategic timing, Camden House emerges as a compelling choice for investors seeking to capitalise on Liverpool’s bustling student market.

For additional information on investment opportunities with Camden House, please click here. Alternatively, feel free to reach out to one of our investment experts at +44 (0)151 433 9300 or via email at contact@advantageinvestment.co.uk.