Hi everyone,
I am (very very) new to property investing and was wanting to see what people think about investing in student accommodation in some of the major capital cities. They are very close to being (or are) positively geared based on advertised rental rates etc. Have any of you out there experienced any difficulties with these type of invesments? Similarly, there are opportunities to purchase apartments that are part of a letting pool, again with very good returns. I know the management fees and levies can be steep, but have you experienced any other draw backs?
Any help or advice would be appreciated.Hi,
avoid places where it's restricted to just students(either as renters or buyers)…in the fine print of some projects they are quite restrictive, and the more so, the lesser the value those properties should be.
also, avoid those that come with lease-back deals where you are locked into long-term leases.
In general, stick to properties where you have clear control, and total flexibility to 100% of the marketplace. Be prepared to do the hard yards as a landlord rather than the seemingly "easy" option of lease-backs and letting pools tempting you with guaranteed high returns with no vacancy – it's likely you're making someone else rich when you avoid risk and take the "easy" option.
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