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If you’re someone who cares about their finances, particularly improving them, you’ll likely be familiar with the popularity of investing your money. Investing is one of the best ways to maximise your money and build some extra income that you can use to put towards your savings, use to help pay for substantial costs or life events, or use as a retirement fund. While investing may seem scary if you’re unfamiliar with it, there are actually some methods that are more popular with beginner investors, that should definitely be considered by those just starting out.
One of the best types of investment is buy to let property, offering the chance to make returns from both rental income and capital growth. Out of all buy to let strategies, one of the most popular for beginners is student property investment, and here are some of the reasons why this could be a good route to take.
Student Property is Often More Affordable
One of the reasons why student buy to let is viewed as a good option for first-time investors is the fact that these type of properties are often more affordable to purchase. When just starting out with investing, it’s likely that you won’t have a huge budget available, nor would you want to risk losing a large sum before becoming more familiar with investing as a whole. That’s why spending less on a student apartment is a better option for beginners. Student buy to let is usually more affordable due to the fact that the apartments are often studios, compared to residential apartments with one or two beds. RWinvest is a property investment company which offer a mixture of student and residential opportunities. One of their most recent student buy to let properties, City Point, has prices starting at just £59,995, while also offering rental yields of an impressive 8%.
Student Property is in Demand
The UK student scene is thriving, with many cities like Manchester, Liverpool and Leeds attracting high numbers of students year after year. This has ultimately led to high demand for student accommodation, which is an added-bonus for beginner investors looking to make money from property. Without demand from your target tenant, you risk ‘void periods’ which means a period of time when your property doesn’t have tenants and you lose out on rental income. By investing in an in-demand property type like student accommodation, you can ensure your investment will bring in attractive returns for many years to come.
Student Property Offers a Hands off Investment
A hands-off investment is when an investor doesn’t manage the property themselves, with a rental management company doing this for them. This involves things like finding tenants, dealing with tenant issues, and collecting rent. It’s common for student buy to let opportunities to be hands-off, as each student development may be run by a select management company. This type of investing is typically favoured by beginner investors, allowing them to make money alongside their usual job or commitments.
Do you have any further thoughts on why student buy to let can be a good first-time venture for beginner property investors? Let us know by commenting below!
