Has anybody had experience in investing in student accomodation? These are usually studio style, incredibly tiny apartments with what seems a good return on an investment. I feel there must be a catch. Can anyone shed some light on investing this way.
Thanks.Depending on the size of the appartment it could raise some difficulties in securing finance or LMI. Also depending upon how many units are in the complex and the level of exposure a single lender or insure has may also raise difficulties.
This is on top of other issues with student housing. If you do a search of this site for student housing you will find a few threads. Some areas you may find you can only fill the accommadtion for 40 weeks of a year (the higher rent for this 40 week period dosen't look as flash when averaged out over a year)
Gibbo has hit the nail on the head.
Depending on the size of the unit will determine whether:
1) It can be financed full stop
2) The lvr the lender will go to.Richard Taylor | Australia's leading private lender
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