http://www.realestate.com.au/property-unit-qld-meadowbrook-106913034
The catch from my asessment of these types of properties is that the capital gain is minimal over time but it's a nice little money spinner. Anyone else have thoughts on these types of properties.
With the strength of the Aussie dollar I would think that the number of students coming here would be much reduced. If this is the case then you may have trouble renting out your property.
Just note that though student properties may appear to have a high rental return they are often vacant for 2-3 months of the year when the students are on holidays.
This can put a strain on your cash flow.
Not saying don't do it, just saying that this is something to be aware of.
Ryan McLean | On Property
http://onproperty.com.au
Email MeHi Luiero…….my opinion only – No.
Finance is usually a lot harder to get too, depending on size of property.
CheersHI, i have been looking at buying an old nursing home that has a large kitchen 16 rooms and a number of bathrooms and setting this up as student accommodation. Any thoughts? My niece is off to uni this month and her accommodation costs are $200/week with 4 other people in a five bedroom townhouse, this includes utility costs.She is responsible for her own cleaning of the house along with her housemates. She pays rent for the whole year, rather than not paying for two or three months as mentioned above. So the figures outlined above look pretty good to me. $1,000/week rental income on a five bedroom house. If i was charging the same amount for a 16 room set up then that would be $3,200/week.
Let me know what you think, i would really appreciate any comments from someone who has invested in a similar set up.
Hi Sonya,
Students are not the only demographic that require basic or short-term accommodation. For example, people employed in professional roles that are moving interstate ad are looking for somewhere to live for a while… or in fact professionals just looking for a room in a house for a long while, but don't want the nuisance of a regular sharehouse where the divvying up of bills is a battle.
ps have you checked with council to see what zoning the property is sitting on, and what types of uses are permitted?
Another thought is that you could advertise rooms on the Stayz website as basic holiday accommodation…
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Reading the comments about student accommodation, i have two IPs which i rent out by rooms (not always to students, mostly to workers) and i find that the rental income is far better than renting the whole house out, however, the lender refuses to revaluate the property so we can restructure the loans to extract the extra equity for the next IP purchase. Would you know how to get around this issue ? Thank you,
Anne
No, unless you get them for a ridiculously low price. For most investors they just tie up equity and stop them from doing other, more profitable things.
@ Anne – Do you manage the property yourself or do you have someone manage it for you?
How do you select people for the rooms? Do you have to take into account group dynamics?Ryan McLean | On Property
http://onproperty.com.au
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