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r1071987
Administrator
19 Posts |
 Posted - 15 May 2008 : 13:01:00
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Alison
Inner city student developments were the "latest" property investment prospect with yields that looked great and low void periods. Lately with the slow down in the property market and the access to decent finance that bit harder, investors need to look even more carefully at what they go for.
There is no "quick buck" to be made from property these days and as you say its a long term bet. The key points we would recomend you focus on are:
- location: how near to the university is the site
- How big is the development: will you be one of 500 trying to let a property.
- Do the numbers stack up: Do your homework and comparables re the asking price and likely rental coverage.
- Service charges: if its leasehold, check what the service charges will be.
- Maintenance: Student Properties require more focus on the maintenance side than residential, how close are you to the development to organise this or do you intend to use an agent.
Its difficult forcasting what will happen between now and 2009, but the important thing is to really do your homework and research the proposed development. Don't accept the sales pitch at face value and don't accept the blurb on valuations and discounts etc. Getting finance on new builds is more tricky these days as mortgage companies have wised up on some dodgy valuations carried out in the past. Look at other student investment options i.e. existing properties in a good area and compare the numbers in terms of investment potential and returns.
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Student Investment Property - off plan
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