UK Student "Buy-to-Let"
In AJP’s opinion, our proposition involving first-class UK student accommodation
embraces the ‘buy-to-let’ business model but enhances the concept by providing a
‘one-stop solution’ to sourcing, renovation, furnishing, letting and full management
services.
Suitable for an investment in just one property, or for clients building a large
property portfolio, this investment also benefits those with little time or expertise
in this area and provides greater prospects to maximise returns by relying on the
professionalism and industry know-how of our UK specialists.
The Investment at a Glance
- High quality UK ‘buy-to-let’ student accommodation
- Gross annual rental yields of 7% +
- Asset class showing stable long-term growth and low volatility
- Rising rental demand from a large and growing student market
- Fully managed by industry experts, with 95% occupancy from year 2, and the majority pre-let.
- Increase in property values and rental returns by specialist renovation to upgrade and maximise space and occupancy
- Minimum investment circa £50k and finance sourcing available
Long-term, residential property has outperformed commercial property and shares,
and last year, in the midst of global economic turmoil, the asset class demonstrated
lower volatility than stocks.
In contrast to new-builds where there has been an over-supply in the 1 and 2 bed
market with concentrations in secondary locations, these properties are ‘traditional’,
in city centre locations, and command improved rents and yields.
Large university cities with a proven demand are targeted, and a secure income is
maintained by granting joint leases underpinned by guarantors (such as parents).
Universities are regarded as ‘recession proof’, with recent news reports confirming
that demand for places is outstripping supply, and 75% of the properties are rented
to this buoyant sector.
