Investing in Student Accomoodation - yay or nay

[Chandy]

Hi all, looking at the options of buying a 1 bedroom unit, student accommodation. $230K with Rental return on $265. Its opposite a major uni in Geelong and soon to be built Epworth Hospital. It has a condition overlay that only students are able to live there. Just wondering what are people's thoughts on it?

 

[mikezen]

Hi all, looking at the options of buying a 1 bedroom unit, student accommodation. $230K with Rental return on $265. Its opposite a major uni in Geelong and soon to be built Epworth Hospital. It has a condition overlay that only students are able to live there. Just wondering what are people's thoughts on it?

Don't know much about student accommodation but really, why bother? Why don't u just spend the 230 and get the same if not a better return with a established house and land

 

[skater]

Can't you buy a 3 bedroom house on the outskirts of Geelong for a lot less that that? Something that can be rented by ANYONE, not just students.

Besides that, if it's like the ones I've seen elsewhere, it will be a tiny little thing with huge costs. Making it hard to sell at a later date.

So.....with the little information at hand, it's a big NAY, from me!

 

[Deltaberry]

If you were after no capital growt, or maybe even capital losses, then YAY

 

[Bigtone]

nay nay nay nay nay nay nay nay nay nay nay nay nay nay nay

 

[Corey Batt]

nay nay nay nay nay nay nay nay nay nay nay nay nay nay nay

There's a lot of horses around it here it seems.

Not a fan, and then theres the restrictions with finance of course.

 

[nhg]

nay nay nay nay nay nay nay nay nay nay nay nay nay nay nay

yep.

and for many reasons, do a search on the forum. In Geelong, I'd imagine you could top that up a little more and get a house with land.

 

[S.T]

run away from it, very fast.

 

[Francesco]

In most cases it will be a losing proposition. Investment is mainly on the basis of yield not CG. Then, there is the cost increases of maintenance and management and limited finance options. Leave it to people who think that it is a nice investment for passive income.

 

[dbun]

Very little capital growth with student accommodation.

Also factor in that come holiday time, most students take off back home (usually overseas) which means you will have an empty apartment for possibly months.

 

[Deltaberry]

Ask the agent if he's bought any. Hah!

 

[Chandy]

thanks I will steer clear, I was thinking that this wasn't going to be a good idea, just needed someone else to tell me, lol

 

[Peter Parker]

For the budget you can do a lot better.

Even if you didn't fancy a house in Corio or Norlane.

Research cheap units like these and use them as a yardstick when comparing others.

http://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/VIC/Geelong/?adid=2010701909


http://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/VIC/North-Geelong/?adid=2010534617

 

[Simon]

If students interest you then buy a well located 5+ bedroom house and rent it out by the room.

Will need to furnish it but the good news is they don't care how cheap the stuff is.

Most of my furniture was secondhand. Seems self sustaining now. Every year they have a new second hand couch better than the last with no involvement from me

 

[bobby85]

That's like those student accommodation units in Broadway next to USyd.

Isn't the deal that it's only for students, and all the rent money goes into a pool and split evenly? (I may be wrong)

 

[Viksay]

That's like those student accommodation units in Broadway next to USyd.

Isn't the deal that it's only for students, and all the rent money goes into a pool and split evenly? (I may be wrong)

I've seen a few similar near UTS going for around 250 for a 2 bedder - bit of a question mark on those, can anyone fill in?