Student Pods for Sale: Hands-Free UK Property Investments For International Clients
The increasing number of student pods for sale in the UK is great news for overseas property investors. In this short article, we are going to briefly outline some of the benefits of this particular real estate investment option.
The student population in the UK is on the increase and numbers are almost certain to increase over the course of the next decade. What’s more, the UK government allows all EU students to access low-interest maintenance loans, so students in the UK always have funds to cover their accommodation costs. As long as you buy a student pod in a large city with established universities, such as London, Manchester, Birmingham or Liverpool, your unit will never be vacant.
If you decide you want to invest in a student pop, a specialist adviser will be allocated to your unit. This person will take care of the entire management of your unit, ensuring you receive “hands-free” investment returns. This means these pods are the perfect choice for overseas investors who don’t have the time or resources to manage international properties on a day-to-day basis. Busy individuals based in the UK can also benefit from these hands-free investment properties.
The student property sector is one of the top performing assets in the UK and has been since 2011. In 2016, UK student investment transactions in the sector topped £3 billion. The sector is popular with institutional investors as well as domestic and international investors. It is perhaps the only property sector to offer high yields and low vacancy rates on a continuous basis. Future projections for the sector are even more impressive but take time to do your own research before you decide to invest.
Figures Breakdown Example
Let’s say you buy one of the student pods for sale for £57,500. You can expect to receive £138 per week for your unit for 46 weeks. This means your gross annual rent is £6348. Now, you have to pay the lettings management company 6%, so £380.33. You also have to pay ground rent of £250 and a maintenance charge of £5897.37. Adding this all up your projected net annual income is £4817.75 or a little over 8%. Not bad, right? If you buy a pod in a big city, there is also the possibility that your unit could increase in value over the years as demand for prime real estate increases.
When it comes to choosing a student pod to invest in, it’s important to make sure you work with a reputable agent. This is especially important if you are located overseas. Unfortunately, there are some rogue companies trying to extract funds from unsuspecting investors by publishing unrealistic figures on their international property investment websites. So, make sure you research the student accommodation market in your chosen UK investment city for yourself before you agree to make a purchase. You also need to ensure that you obtain all paperwork pertaining to your unit, so you are able to resell it without problems in the future.