Student Housing Investment For BeginnersJuly 14, 2017
There can be no denying that student housing investment opportunities are among the best options for investors. New investors, in particular, seem to be attracted to the market: in 2016, 34% of student accommodation transactions involved first-time investors.
Despite its popularity, however, many first time investors aren't sure what to look for when considering student accommodation investment opportunities. Unfortunately, that means that the new investor can make some rather poor choices.
This guide is designed to be the best resource, short of consulting an advisor or working with a real estate acquisition company, to help new investors make the right decisions about student housing investment opportunities.
Consideration: The School
The size of the University plays an important role in whether or not investing in nearby accommodations makes sense of not. Typically, you are looking for schools with at least 10,000 or more students. It is also important that the school show growth.
Another important factor when considering a school is its overall economics. A school with a larger population of students from affluent families will be much more likely to have students looking for off-campus housing.
Consideration: The Property
Even if the school is a prime candidate, you have to determine whether or not the property is a viable option. Look at some local competitors. Are they offering discounts? Are they using gimmicks to fill their space? If so, then that is a good indication that the property might not be in a viable area.
It is also important to compare the amenities offered by the property you are looking at and the ones nearby. You will have a hard time filling spaces for the same price as a competitor if they have a much more modernized setup.
Consideration: The Location
Location is one of the most important factors in all real estate investments, but especially when it comes to housing for students. Many students will not have cars or will want the flexibility to walk to and from school -- and the occasional late night 'study session.'
Being close to campus also lets you off the hook from providing amenities like gyms and pools, as most campuses will have such luxuries themselves. That means you can maximize the amount of space that is profitable.
Student housing investment opportunities are great for investors new and old. If you are looking into this sort of opportunity for the first time, this guide should provide you a solid basis for decision making.