Posted in late November 2009, RP Data released an interesting article outlining the pros and cons of investing in student housing. Some of the important points covered include:
- Investors can benefit from good yields and steady demand.
- Unemployment rises in tough economic times. Student housing is a rental sector where it is impossible for the tenant to loose their job and demand usually remains steady.
- International students enrollments increased an average of 20.7% from last year. Some universities are reporting an increase of undergraduate acceptances by 13% this year. International education is Australia's third largest export.
- Statistics from Brisbane alone show student accommodation consists of: 47% share accommodation, 18% living at home, 15% living on campus, 13% living with friends and relatives and 7% purchasing their own property.
- Share accommodation provides a great alternative at a more affordable price range - this is reflected in the market share.
- No matter the location, yields for student accommodation are almost always higher to renting to non-students.
- Conflicts can arise having several people living under the one roof. Many of these hassles can be solved by hiring a good property manager.
- Location is the key to student housing. It is vital for the property to be close to the university or near public transport. As 10% of the market own cars.
- Marketing costs are higher compared to normal single residence accommodations.
Read article in full click here: Getting a Top Mark - investing Near Universities
Source: RPData
Image Credit: Jeff Werner
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