Thoughts please!
I am currently looking at purchasing a purpose built student accommodation unit. The kind that has several bedrooms with ensuites off a central lounge/kitchen area, with each room rented separately, sited close to a university. Returns look ok; basically it looks like if one of the rooms is rented all the time it covers body corporate, rates, etc, so the others go to pay the mortgage. Electricity, water, and internet are included in the student’s rent. From what I can tell, it looks like this complex was build specifically to rent to uni students, although non-students are allowed.
Has anyone owned one of these, or similar? They don’t seem too popular as an investment, and I am informed that their capital growth sucks, although yields seem pretty good. I’d like to know what problems crop up with these, any pitfalls to avoid etc. Would not particularly want to be in a situation where the huffy PC Uni Crew decides to protest against the Evil Capitalist Landlord by pouring cement down the drains or suchlike, because the Evil Capitalist Landlord – gasp! – charges them rent!
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