Property Investing - Student Accommodation

[Tranquility]

Hi All,

I'm looking to buy an investment property in the next six months ago and have been looking into student accommodation. I'm from Melbourne myself, but am considering buying in NSW. For about $250K, you can buy a 51sqm student loft style apartment, that rents out for $456 approx per week. Prices and rent vary depending on size of apartment. The rental return appears to be around 9-10%.

I was just wondering whether Student Accom is a good investment, or whether I should stick to houses? The return seems great in comparison to what you would make on a house worth $250K, but house prices go up and you make your money there... I dont know whether student accom does.

Any advice would be greatly appreciated

Thanks

 

[Timmy]

Have you checked out Aussie Property Forums?

 

[Tranquility]

I hadn't, but I will.

 

[Grinder]

Not a fan of student accommodation. They usually struggle to hold their value or actually go down over time & the returns are marked for a set period which you won't always get.

 

[jono1887]

Hi All,

I'm looking to buy an investment property in the next six months ago and have been looking into student accommodation. I'm from Melbourne myself, but am considering buying in NSW. For about $250K, you can buy a 51sqm student loft style apartment, that rents out for $456 approx per week. Prices and rent vary depending on size of apartment. The rental return appears to be around 9-10%.

I was just wondering whether Student Accom is a good investment, or whether I should stick to houses? The return seems great in comparison to what you would make on a house worth $250K, but house prices go up and you make your money there... I dont know whether student accom does.

Any advice would be greatly appreciated

Thanks

I've been looking into this as well... its quite a bit cheaper in Brisbane. Do your returns take into account no rental income in July and for 3 months during Christmas?

Are you looking at purchasing a property that is managed for the sole purpose of uni students like 'unilodge'? They seem to have high fees and commission ect ect...

 

[tech/a]

These investment have no land.
Property investments with any clout have land.
Those who make the money are those who develop them.
Frankly your making someone else a handsom profit.
If you can buy a property and turn it into a 7 bedroom lodge---which Ive seen done.(See Property Investor Mag). Then you WILL profit very well.

Dont be someone elses Alan Bond.

 

[Mr J]

Hi All,

I'm looking to buy an investment property in the next six months ago and have been looking into student accommodation. I'm from Melbourne myself, but am considering buying in NSW. For about $250K, you can buy a 51sqm student loft style apartment, that rents out for $456 approx per week. Prices and rent vary depending on size of apartment. The rental return appears to be around 9-10%.Thanks

I know nothing about real-estate, but those numbers don't seem reasonable. Where is this place, and what are the features? 51sqm sounds like a one-bedder, and I can't imagine a student paying that much. The price sounds more like what a 'professional' would pay for a one-bedder with a great location and decent building facilities, but that is a guess.

 

[jono1887]

I know nothing about real-estate, but those numbers don't seem reasonable. Where is this place, and what are the features? 51sqm sounds like a one-bedder, and I can't imagine a student paying that much. The price sounds more like what a 'professional' would pay for a one-bedder with a great location and decent building facilities, but that is a guess.

You'd be surprised what international students would be willing to pay...

http://www.unilodge.com.au/locations/pricing.asp?Location=Brisbane

 

[prgudula]

most of the banks wants higher contribution with such accommodation. however CBA has started to give such loans with 30% down payments. Bigger size apartment is easy to get loan from banks compare to the small ones you see at Melbourne like Boxhill, Hawthron

 

[gfresh]

Some of these studio-style student accomm apparently the banks aren't too keen on financing. You may need 30% deposit. This may be a consideration.

 

[Mr J]

You'd be surprised what international students would be willing to pay...

Maybe. My apartment is a little larger than the one the OP was talking about, it is also next to the harbour with views, and 5 minutes from the city. For that I pay significantly less than $456pw.

 

[awg]

These investment have no land.
Property investments with any clout have land.
Those who make the money are those who develop them.
Frankly your making someone else a handsom profit.
If you can buy a property and turn it into a 7 bedroom lodge---which Ive seen done.(See Property Investor Mag). Then you WILL profit very well.

Dont be someone elses Alan Bond.

I agree 100% with Tech

if you can get a house, close to a Uni, you can pack them in like sardines

House can be old and shabby, large block of land

When the house is completely depreciated, can knock it down and build duplexes, or sell the land

If you own units, they can have a surprisingly short lifespan, if the building is not very well constructed

so you are left with not much at the end of the building lifespan

chuck in body corporate regulations and maintenance not in your control.

all this means nothing if you cant afford a free standing house though