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Student Housing Property: A Sound Investment

May 5, 2016

Since the number of university students in the whole world has considerably increased in the last few decades, there are new opportunities for investors in different areas concerning students and their needs. The liveliest market at the moment is definitely the student housing market. Due to that fact that campuses and dorms cannot accommodate all the students, there is a growing demand for affordable private rental properties. Here is where investors and students should be looking for sound investment opportunities.

Fund stakeholder

By becoming a student housing fund stakeholder, you do not have to invest any large sums of money while having a chance to earn some. Also, here you share the profits and responsibility with other people. That way your money is not directly exposed to market issues, but all the stakeholders make their decision together.

Although the return on this investment is not as high as it would be if you were the only investor, here you can scale your investment in accordance with your financial situation and predictions, which is a perfect option for a student. You might be able to buy a property in the housing unit your fund has financed, but you could also decide to keep making money from the profits the fund makes.

Mortgage availability

Banks are not too open-minded when it comes to students and mortgages. If you have not finished your studies yet, banks do not have any sort of guarantee that you will pay back your mortgage. However, there are still some options for students who want to get their own property during studies. What students need to do is to contact the lenders and banks that give a chance to young students to get a home of their own.

Although this sounds like an SF-scenario, the growing number of students makes financial institutions change their policies, too. Of course, students will need to make a deposit payment or find a guarantor with a property that will serve as a proof that you will be paying your mortgage installments regularly. You can read more about those new conditions on the student housing market in this piece.

Buying considerations

Let's say that you have been granted a mortgage or you have saved enough assets to buy your own place. The sole act of buying a property has to be thought through well ahead, in order to avoid any tricks and frauds. Firstly, you should choose the location that will not waste your time. This also means that you should analyze the future potential of the location and the property itself, claim asset advisory specialists.

Secondly, the type of the property also plays an important role. Buying a flat means fewer demands in the future when it comes to maintenance. However, if you have cash, it would be wise to consider buying a house. That way you can rent a part of the place and make some profits along the way. 

Finally, if you are buying a property of your own, you should bear in mind that you might need to sell it if you have to move when you find a job. This is why students should never buy properties in less attractive areas, only because they can get a few more square feet in such parts, but go for more attractive parts where the price of the property will rise.

Buying a home is never an easy option. Even families with children are often uncertain whether or not they will be able to make the ends meet if they decide to buy a property, let alone students. On the other hand, it is always cleverer to invest money in a real estate than to waste it. If you are investing your money in a well-maintained place in a prosperous neighborhood, you will not regret it and it might even bring some profit in the future.

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