Student Accommodation Achieving 7% – 9% Yields

In recent years the student accommodation investment market has become a significant growth area for property investors and at CXG we have not been slow in getting to grips with this exciting new opportunity.

Throughout the country specialist developers are either building new developments or converting existing buildings such as redundant office blocks to provide significant numbers of studios and one bedroom flats to accommodate the ever-growing number of university students both from home and overseas.

The modern generation of students are used to sophisticated living standards and unlike their parents before them are less inclined to be willing to live in uncomfortable, draughty bedsits which lack modern facilities.

As a result, demand is strong for the new breed of student accommodation with most of the completed projects already fully-rented out. These new developments provide everything that a young student leaving home for the first time would wish for and in addition to modern, well-designed, high specification studios and flats, in-house facilities  usually include communal areas, reading rooms, gyms, cinemas and the provision of hi-speed broadband and Wi-Fi throughout. Security is also part of the package with 24 hour CCTV and contents insurance as  standard and often a concierge service too can provide great comfort to parents as well as the students.

With ever-increasing numbers of foreign students ensuring that demand remains strong, this area of property investment is seeing rapid growth in popularity. Rental returns are higher than for normal student accommodation and the need for this type of accommodation is clearly already established and growing. And all of these factors make this type of investment perfect for those who wish to generate a secure income or add to their pension portfolio.

The yields are very attractive and often guaranteed by the developers whilst entry levels can be surprisingly low compared to a more conventional property investment. We have investment opportunities available from as little as £54,950 with a net yield of 8%, making this a fantastic way to enter the world of property investment.

Whilst this is a market still in its infancy, the re-sale market is yet to mature as is the ability to finance the purchase, but these factors are changing rapidly as the concept gains popularity. As with many new ideas, early adopters will be the biggest winners and at CXG we have established good connections with many developers of these projects.

We are concentrating our efforts in regional cities such as Manchester, Sheffield, Liverpool and Nottingham rather than looking towards London where an already over-heated property market makes achieving a decent return on investment more difficult.

Many northern cities were hit hard during the recession years and property prices took a hit. But this is the very reason why they are now such good areas in which to invest. Developers have been able to secure good deals on land and buildings and these savings are reflected in the prices at which properties can now be offered for investment.

These provincial cities all boast a range of educational facilities whose students are seeking secure modern accommodation and so are the perfect target areas for investment. Manchester alone has a student population in excess of 105,000 most of whom require accommodation. Liverpool and Nottingham too are packed with increasing numbers of students who all need housing and these developments fit their requirements perfectly. Sheffield whose two Universities alone boast a student population of over 60,000 is another city where we have some brilliant deals available for any of our clients who wish to join this fast growing and profitable investment market.

As with all investment opportunities available through CXG, these developments are carefully researched and evaluated and we only offer propositions to our clients that we are certain will give them the sort of return on their investment that they are looking for.

Why not check out the links in this article, assess the possibilities for yourself and then give us a call or come and see us to discuss the best way to add Student Letting Accommodation to your property portfolio.

Opportunities in this area

Trinity Hall, Leeds | Student Apartments

Interior of Trinity Hall, Leeds

Trinity Hall – Location Trinity Hall is located in a student suburb of Leeds, approximately one mile out of the city centre.  Close to both the University of Leeds and Leeds Metropolitan University campuses, Woodhouse has always been a very popular student area. Woodhouse has a vibrant community of long-term residents for years and has […]

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Sefton Park Studios, Liverpool | Studio Apartments

sefton park - liverpool property

Sefton Park Studios are located in a conservation area and overlooking the idyllic and tranquil Sefton Park. They are situated on their own private secluded grounds with 15 private parking spaces available. They are ideal for post grad students who wish to be away from the hustle and bustle of city living yet offer easy […]

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Northgate Point, Chester | Student Apartments

Optimized-Northgate-Point-sold-out

Chester is one of England’s finest historic cities and home to the best preserved walled city in the UK. It has an awe-inspiring eclectic mix of Medieval, Roman, Anglo-Saxon and Victorian buildings giving it a character unlike any other city in the UK. Having over 13,500 businesses located in Cheshire West and the Chester area leaves it with […]

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