We share our 9 quick-fire reasons as to why you should consider investing in Purpose-Built Student Accommodation, and how it could in fact be more beneficial than your typical residential investment..
1. Great ROC with yields typically outstripping the residential buy-to-let market.
2. PBSA attracts no Stamp duty.
3. Low cost of entry typically associated with this type of property.
4. Rents charged to students tends not to fluctuate too much, regardless of the cities they are in as students typically pay similar rental amounts wherever they are.
5. This sector of the market is becoming more attractive to funds and the like, this may in turn push up the price of this sector where typically prices remain steady and never move too much.
6. As these properties receive income that rarely changes, the price will typically stay strong when a market may drop locally, a very favourable factor to any investor.
7. Typically low maintenance as students are nowhere near as fussy as residential tenants.
8. High occupancy rates, typically 100% as there is a lack of good student property in many of the areas these developments pop up in.
9. PBSA market is a typically a cash only market given the lower values of property, and as a result with the cut in mortgage interest relief for Landlords this sector’s has not been impacted.