You are all very excited, your child’s A-level exam results are through and they have the grades they needed, now to let the university know and work out where you will live. Well, for more os the first year, Halls of Residence is provided by the university, but this is not always the case. It is important to note that by the second year, your son or daughter will require their own property, typically off-campus and in the surrounding city or town.
So how do you choose or at least help guide your son or daughter to the right property? For most, they will make a request to rent a room in a shared property with their friends. These are usually old converted houses that are far from perfect and are usually maintained to a poor standard. But what if you could say to your child that you have a brand new, or purpose state of the art apartment that is for students only? One where all their friends can have their own apartment, normally located in the most central parts of town with facilities such as a gym, gardens and common areas where students can meet and congregate. I am guessing most would jump at the chance.
What if that property cost you as much as a room would cost in a shared property? All sounds too good to be true, but this is in fact what these new PBSA properties offer, all the mod cons, comfort and facilities, all for the same money as a bedroom in a shared property.
These properties are perfect for students, and are becoming the must have accommodation. If you are interested, why not look at owning your own PBSA property and benefit from the income earned by owners of these properties. Typically owners of this type of apartment will return yields of 8% net on their investment, and even if there is not one of these properties available in the city or town that your child is studying at, why not purchase one and use the money earned on that to pay for your child’s accommodation at their University. Once your child has finished studying, you can either sell the property on, or as we see in most cases keep it and continue to earn market beating returns of 8% plus.
These properties typically pay for themselves within a 10 year period leaving you to enjoy inflation beating returns with the property paid for. There is little else out there that can deliver to this level, providing accommodation for your son or daughter and then when finished studying, you continue to make great returns, owning a property in a sector that is fast becoming an asset class in it’s own right that is recognised globally as a great investment, and in our opinion will see capital growth and offer great returns in tandem. The fact that this type of property is recognised internationally we are seeing many funds coming to the UK looking to invest in the PBSA sector, and it is this demand that for us underpins values going forward at the same time offering fantastic revenues.