It’s term time and if you live in Cardiff, you can’t help but notice the increase in students with top knots and Nikes, mooching about in Roath and Cathays as university life swings into action.
As well as wondering why the nineties are suddenly back in fashion with the bright, young things, parents may also be asking whether it’s worth investing in a property for their child while they’re studying at university. There are certainly some real benefits to investing in a buy-to-let student property if you have the money to do so.
Owning the property yourself gives your cherished offspring a certain amount of stability, and ensures that they have somewhere safe and, hopefully, pleasant to live during their time at university. It’s unlikely that you will evict them or sell the house over the summer holiday (yes, this has happened to a couple of unfortunate students we know who started term with nowhere to live). Renting out the remaining rooms will also help to cover the cost of the mortgage and could leave you with some extra income.
At the end of their degree, assuming the market remains strong, you can either sell up, perhaps making an overall profit, continue as a landlord receiving a regular income, or use the property give your child get their first foot on the housing ladder.
However, it has to be said that this won’t be without its challenges. Being a good landlord can take up a lot of time, and expecting your child to do the job for you could put them in an awkward situation if their housemates miss a payment or cause damage to the property.
However, if you are looking for an investment opportunity, and don’t mind managing a house full of young people, investing in a student property can be a good investment.
If you’re interested in buying a property to let to students, and would like a free copy of our buy to let tax guide, or for any other information, our client relationship manger would love to hear from you! Click HERE to get in touch.