Taking Advantage Student Accommodation Investment Opportunities

The real estate sector has since been a lucrative one for most investors. Several known investors have made large cash outs investing in it. They are known as those who take the risk for high returns. Even in the current economic fluctuations, it has proven to be a stable means of investment.

If you have been in the real estate sector for a while, you might already be conversant with the PBSA investment opportunity. PBSA means Purpose Built Student Accommodation. It involves the building of housing facilities for students.

The student PBSA investment options seem to be promising investments. However, some investors disagree with this point. Whether it will be lucrative or not has been an argument for a while.

With the recent rising interest in PBSA, we can say that investors are beginning to agree that it is a lucrative option in the real estate sector. There are several benefits of investing in PBSA. In this article, we will exposit on some benefits of this investment opportunity.

Benefits of Investing In Purpose Built Student Accommodations

“Follow the money…” is a known quote amongst investors. Recently, there has been rising interest in student accommodation. Top companies have begun to develop a niche around it.

The returns have proven attractive and show potential for more growth in the coming years. However, if you still have doubts about investing in it, below are some benefits investors enjoy from PBSA.

Demand Is Sky Rocketing

You are probably wondering how true this is. Countries that have standard education record a massive turn out of students yearly. Due to this, these institutions have difficulties in providing accommodations for all students.

Accommodation is provided only in freshman year. Returning students will have to pay for housing somewhere else. With this, there is a rising demand for housing. Investors have decided to grab this opportunity.

High Enrollment

With an average of 3million students applying to institutions in the UK, an investment in PBSA is desirable. A lot of persons still have an interest in higher education. In turn, it provides the opportunity that investors need.

The driving factors for real estate investment in an area are demographics and job growth. However, the student housing investment is dependent on student enrolment.

Long-Term and Continuous Returns

Long-Term and Continuous Returns

In most universities, a regular undergraduate course takes up to four years. Another course like engineering can take five years or more. The duration of these courses suggests a higher chance of getting paid for such a period. Some students might decide to apply for a master’s degree, thereby extending their stay. You can click on https://en.wikipedia.org/wiki/Master%27s_degree to know more about a master’s degree. And if you are looking for the best student accommodation in Sydney, take a look at the site here.

In countries like the UK, an average student pays as much as £7200 annually. With proper investment in PBSA, investors might just be hitting the next jackpot.

Less Stress in Marketing

Investors in this sector do not have to do much marketing compared to regular housing investors. If your property is around a university area, you will have more tenants than you need. Spending money on marketing will not be necessary. Student accommodations sell themselves, thereby reducing your efforts in marketing.

A Tendency for Value Appreciation

The rising demand for student accommodation shows tendencies for value appreciation. As new investors become interested, there will be a need to purchase properties in high-traffic places. You can decide to sell off and make money. You can only do this when you buy when the price is still affordable.

Rent Control

In some areas, some policies regulate the increase of rents. Landlords are not allowed to increase rents unless they have a new occupant. The idea of this has been an issue for property owners in the area. However, with PBSA, the case is quite different.

There are always new sets of students admitted yearly in universities. PBSA investors could increase their rents as soon as they get a new student. Unlike regular property owners, they may not have to wait so long before they can raise rents. You can click here to read more about rent control.

Conclusion

Student housing is a significant investment opportunity. The returns you receive depend on the area where your building is. However, the returns are on the high side. If your building is close to a university, you may have more tenants.