Why the sudden drift?
Over the years it has been thoroughly researched and concluded that due to economic conditions and tough mortgage criteria, people are inclined to buy a reasonable property and like to pay the mortgage from the capital they get from the rent.
UK student property investment is currently the most alluring niche for real estate investors. As students are scattered all over the place and can always use a place that is near to their school, college or university. They really like to get a place near to their institute. So smart investors must think about it from a student’s perspective. If the real estate buyer wants to buy a property, then a smart advice is to buy from a student’s perspective.
Statistical support to the notion
While in 1990s the rent controls were removed more people actually bought private homes for the purpose of living and building their lives. At that same time buy to let mortgage trend was become a fashion. It was thought wise to invest on buy to let mortgage properties and earn unbelievable profits. But later the notion has faced a change. But then people changed their approach towards property investment and they thought that it is perhaps wise to invest in a property and pay the mortgage or interests from the rents they get from their property.
Long gone are the days when containing a luscious and luxurious property was in fashion. It is now considered waste of property in times of massive population and hustle bustle. UK student property investment is now a trend. Students are the target market for renting out the property.
Why rental sector is making more profits?
Since 2006 the owner occupiers have been reduced. And the credit crunch that appears only because of some relaxation in reduced mortgage wooed the potential buyers to invest in rental properties. Most people are investing UK student property investment just because they knew the need of the space, students will be needing in future. Almost 500,000 owner occupiers have been decreased since 2012. This happened because they invest smartly in real estates.
Rentals are profitable because the turnout is great. Students are not there to stay forever in your property, they move in and out constantly. And yet there are almost twice the potential renters available who could have your property because of its commercial approach, closeness to their college vicinity or convenience. (Missing out on rising property prices? Invest in a ‘housing Isa’)
Rentals are surely the smart way to spend and earn money. Investing in student oriented property is bound to be profitable.