Investing in a Student Apartment
- Thread starter Gulati
- Start date
Hi ak,
The alarm bells are ringing:
1. brand new
2. student apts
3. rental guarantee
Do a seach on each of these in the forum here and you'll see why.
Welcome to SS btw.
Very big generalisation as there are obviously many different areas and options of student apartments, but it's not something I'd touch.
Was thinking about buying one in UniHouse a few years back but decided against it; too much supply for my liking and dividend was alright but nothing special.
Fast forward 3-4yrs and the prices are still the same, rents the same, and still a glut of them on the market and look hard to get rid of. Bare in mind though this is a very large building. How many in the group you're looking at?
Was thinking about buying one in UniHouse a few years back but decided against it; too much supply for my liking and dividend was alright but nothing special.
Fast forward 3-4yrs and the prices are still the same, rents the same, and still a glut of them on the market and look hard to get rid of. Bare in mind though this is a very large building. How many in the group you're looking at?
Student Apartments are not property investing - it is actually closer to buying a share in the business.
Cheers,
The Y-man
My view is that student apartments happen to be made of bricks & mortar but lack some of the most important characteristics of 'normal' residential property investing.
Finance can be a major challenge which tends to hold back growth
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Gee, not much for me to add to the discussion. It's all been said.
I would add, though, that if you think you might want to sell one day, then have a look at student apartments listed on RE.com in any capital city.
Huge oversupply.
Capital growth from residential property is largely driven by demand from owner occupiers. Investors are only a very small % of the property buying market.
Given that owner occupiers will not be competing for these student apartments as they come on the market, there is little upward pressure on prices.
I know some people who have invested in Unihouse apartments here in Adelaide. They sold them (took ages to sell, too) as they were not getting the anticipated returns due to increases in various fees related to management and building maintenance.
That's my 2 cents worth.
I would add, though, that if you think you might want to sell one day, then have a look at student apartments listed on RE.com in any capital city.
Huge oversupply.
Capital growth from residential property is largely driven by demand from owner occupiers. Investors are only a very small % of the property buying market.
Given that owner occupiers will not be competing for these student apartments as they come on the market, there is little upward pressure on prices.
I know some people who have invested in Unihouse apartments here in Adelaide. They sold them (took ages to sell, too) as they were not getting the anticipated returns due to increases in various fees related to management and building maintenance.
That's my 2 cents worth.
If you want to go into student apartment ask for the conditions to be amended:
1) for either party to give 30 days notice to break the lease so you can choose to lease the unit out yourself;
2) owner to stay in the unit as long as they like so the apartment can be attractive to OO;
3) unit is built to suit OO with internal laundry and kitchen;
4) unit is at least 40 sq metre or more according to lender's requirement;
5) make sure that you get approved finance from a dinkum lender before buying.
You are unlikely to get to change these conditions, but conditions 2, 4 and 5 are the minimum.
Cheers
1) for either party to give 30 days notice to break the lease so you can choose to lease the unit out yourself;
2) owner to stay in the unit as long as they like so the apartment can be attractive to OO;
3) unit is built to suit OO with internal laundry and kitchen;
4) unit is at least 40 sq metre or more according to lender's requirement;
5) make sure that you get approved finance from a dinkum lender before buying.
You are unlikely to get to change these conditions, but conditions 2, 4 and 5 are the minimum.
Cheers
Would you all classify the following as a student apartment?
http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=26544277&s=vic&tm=1249647556
On the surface the yield looks great..... what am I missing here?
http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=26544277&s=vic&tm=1249647556
On the surface the yield looks great..... what am I missing here?
"Purpose built complex" and "ensures the secure return of $1,304 per calendar month" sounds like student accommodation to me.
The rental guarantee here could be the concern but the seperate bathroom and toilet is a plus.
Can you drop out of the letting pool and if so how much notice must be given? Will it allow for owner occupiers?
What is the total floor space on it?
Regards
Steve
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