There are a lot of topics on the pros and cons of student accommodation. I get all of that.
What I want to know is what is the actual title looks like? What restricts the landlord to only rent out the place to students? Is there an encumbrance on the title or is there some sort of management agreement? Who monitors and controls this?
Wouldn’t it be a great investment idea to locate properties that are student accommodations that could have that restriction lifted? Wouldn’t that mean there would be an immediate increase in value?
I also think the same would apply to a stratum title? Buy an old building that is on a stratum title and get the whole complex to strata it and bang instant increase in demand and hence value as more people will bee willing to buy as there are more people who can get finance.
Or am I missing something?
Hi propertyboy
I think you'll find that the university has a very long lease on the whole building. As such it is an IP venture and you would not be able to sell it to an owner occupier.
With regards to strata titling, a couple of things to check would be whether the dwellings are all too small for council to allow the titles to be split. Banks often don't like to finance things that are below 50m2 and as such your buyer market is reduced to people who can and are prepared to stump up bigger deposits (or in fact cash buyers).
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
