Avoid investing in student property in Central London…
Student property in Central London may be an attractive idea for investors but, in reality, investors may receive better returns by investing in other key UK university towns and cities.
Why avoid student property in Central London?
According to some property experts, London property prices have peaked. This information should be taken with a pinch of salt but, either way, what should be noted is that it is expensive to purchase any form of property in London. Especially Central London.
Let’s face it, the average residential house price alone is almost half a million pounds!
Although rental prices across many markets (commercial, student, residential for example) are higher in London than any other place in the UK, investors will not necessarily reap the rewards.
The average NET return for student property in London rests around the 4% mark.
Think outside the box
Don’t just think outside the box… take a step outside of it.
Research in the sector shows that, venturing slightly out of London to Luton to purchase student property will enable to you achieve a yearly NET return between 8.5% and 10%.
What’s more, property prices are generally lower outside of the Capital, which means that an investor doesn’t have to tie up all of their cash.
Traveling even further north to key university cities such as Liverpool, Manchester and Leeds may provide investors with an even lower entry level into the student property market.
London is a top choice for students and is home to many world-renowned higher education institutions however, the city may not generate investors the highest possible yield. Before investing, investors should seek opportunities which will provide the highest return for their money.
A recent video interview on The Telegraph helps to highlight why investors should avoid investing in student property in London and explains the rise of the student accommodation sector.