A recent poll discovered that two-thirds of parents are thinking about investing in student property in Worsley to help their kids pay for school expenses as costs and fees continue to rise.
For many students, the university is becoming a more difficult and expensive option as rent prices rise and tuition costs continue to climb. Many individuals are finding it increasingly difficult to make ends meet with just their maintenance loan and a part-time job when the cost of housing and tuition combine.
According to a recent survey by Trussle, 66 per cent of parents think that buying a student property for their child is a sensible idea.
The goal is to allow their kid to live in the house while they were at school, whatever in-house rent was negotiated by the family, hopefully lowering their living expenses.
When their kid had completed their program and was ready to move on to the next stage of his or her life, parents would be able to rent out their house to other students and begin making returns on their investment. According to a survey of 2,000 homeowners, 53 per cent said they would consider downsizing their family home to assist support their child through university.
While it is true that student buy-to-lets are a great investment at the present time, many parents believe they are a bad idea. Student buy-to-lets have outpaced the rest of the rental market by leaps and bounds for several years, with yields improving by as much as 17.86 per cent above the overall rental market.
The value of the private rental sector has also increased recently. According to Shawbrook Bank, the combined value of the private rental industry rose by 5.8% from August 2020 to August 2021 to £1.4 trillion.
The average rise in house prices across England and Wales was 4.6 per cent between October 2017 and September 2018, according to the latest official statistics. However, house price growth in London has outpaced the national average by a significant margin – an increase of 6.2 per cent compared to 3.9 per cent nationwide during that time period, according to HouseSimple data from Yorkshire Building Society and Savills research firm LSL Property Services Ltd’s annual reports.
During this same 12-month period, rental property rents increased by 6% on average nationally. In comparison, homeowners’ costs rose by 5% over the same timeframe for a total difference of 2%. Rents available for tenants via RightToRent have risen by 16% over the past
Trussle also observed in their research that tax rewrites had tilted against landlords in recent years, making buy-to-let investments no longer the super-profitable alternatives they used to be.
However, Trussle’s data revealed that “property is still seen as a safe and reliable method to boost income.”
While there is still a huge interest in real estate, both long- and short-term rental property prices have risen—and that’s exciting! As more people look for housing around the world, investing in rentals may be an excellent way to diversify your portfolio. However, despite the increased expenses of entry and lower returns, there is still a lot of demand for rentals.
The best advice on where to invest and how to manage a student property may help you maximize your profits. The numerous taxes and rules that come with owning a buy-to-let student property might be bewildering at first, and this is where Pick my Pad can assist.