Now that we’ve looked at the general outlook of the student market, let’s try and answer the question, “is investing in student property a good idea?” by looking at the benefits of student property investment.
Firstly, student property is far more affordable than traditional buy-to-let properties, with prices often falling below the £100k mark.
For instance, at RWinvest, we have luxury student homes from only £74,950 with ELEMENT – The Quarter.
Secondly, while properties are affordable, rental costs are usually high thanks to the premium facilities on offer in certain PBSAs, like onsite gyms and cinema rooms.
With these low prices and high rental figures, rental yields are some of the highest out of any property class, with common returns upwards of 8% NET.
Lastly, student property investment can be completely hands-off. With most student developments, there will already be a dedicated student management company meaning you will not need to fulfil any landlord duties.
For these reasons, if you’re asking, “is investing in student property a good idea?” or “are managed student properties a good investment?” then yes, student investment is a great investment in 2024.
Pros:
- PBSA is more affordable than traditional buy-to-let property.
- If you buy new-build student properties with an investment company, you can get assured rental returns for several years.
- High rental yields due to low property prices and high rent from premium facilities.
- Massive demand for PBSA, with three full-time students for every available bed.
- Completely hands-off investment.
- Two forms of returns through both rent and capital growth.
