Hello,
I am looking at a couple of properties in Highton/ Waurn Ponds, where Deakin University is located. There are 2 properties that are for sale in Highton within 2 minute walk to the campus. Both properties have the same return but there are a big difference in the price tag. One priced at low $400K and the other at $495K. The property that is at the lower end of the price range was actually purposely built to be rented out to students. The other is a family home and rented out to students. Both built 2 years ago and both fully furnished. The cheaper one has been furnished with new furniture 2 years ago.
Confused, which is the better offer. The family home with a higher price tag or the purposely built home for students. I feel the family home would be easier to sell but then compare to the purposely built home there is a good positve cashflow. Both returning approx $720 per week.
Help
Student housing?I plan on attending the univerisity of alabama in birmingham in the fall. i want to know the insiders on student housing? what is really like? please give me all the details you can. im really nervous but student housing on campus is all i can afford.
Both require different methods for renting and looking after. Will you hand everything over to a PM or do it your self? Most PM don't like dealing with student accommodation. You will also have more costs associated with student accommodation in regards to furniture, facilities, utensils, fire alarms, cleaning etc and this will eat into your 720/week. What about non semester times. Will you still get the same rent?
If you want to do hands on then either is good but if you want to leave it to apm and forget the go with the private one.
Purpose built student accommodation can be harder to finance than 'standard residential' and, if this is the case with this particular property, cit an explain the price differential.
What you are seeing could be the result of the financing difficulties with purpose built properties which can have an impact on capital prices.
Now all I need is a broker to come along and say things have changed
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