Forums / Property Investing / Help Needed! / Student Accommodation Experiences

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  • Profile photo of numerikenumerike
    Member
    @numerike
    Join Date: 2008
    Post Count: 1

    Who has experience with student accommodation as an investment property?

    I've noticed that they are usually high yield, however I can understand why. High turnover of tenants; and students missing payments from being poor. Other than those two points, does anyone have any objections to investing in student accommodation?

    There are a few studio i'm looking at in Sydney CBD that are in my price range and look to be very attractive investments.

    Would like to hear from anyone that has experience with student accommodation (studios). Any success stories or blunders appreciated.

    Cheers
    Ross

    Profile photo of trakkatrakka
    Member
    @trakka
    Join Date: 2004
    Post Count: 257

    I own an 18-bed student accommodation in Brisbane. If it's well-located, you should have pretty much 100% occupancy, and contrary to what one might expect, you tend not to have problems with payments. Many of the tenants are foreign students and pay in bundles of cash a semester or year in advance! Just check that the body corporate payments aren't too high, in the situation that you're looking at.

    The main downside to buying one studio in a complex is that they're usually considered a specialist type of accommodation and you can only get 60 or 65% LVR, I believe. But if you can get a higher LVR, then I'd say they're a reasonable investment.

    Best wishes, Tracey in Brisbane

    Profile photo of SarahSarah
    Participant
    @sarah101
    Join Date: 2015
    Post Count: 10

    <font face=”georgia,palatino” size=”2″>I own an 18-bed student accommodation in Brisbane. If it’s well-located, you should have pretty much 100% occupancy, and contrary to what one might expect, you tend not to have problems with payments. Many of the tenants are foreign students and pay in bundles of cash a semester or year in advance! Just check that the body corporate payments aren’t too high, in the situation that you’re looking at.</font>

    <font face=”georgia,palatino” size=”2″ color=”#000000″>The main downside to buying one studio in a complex is that they’re usually considered a specialist type of accommodation and you can only get 60 or 65% LVR, I believe. But if you can get a higher LVR, then I’d say they’re a reasonable investment.</font>
    <font face=”georgia,palatino” size=”2″ color=”#000000″>
    </font><font face=”georgia,palatino” size=”2″ color=”#000000″>Best wishes, Tracey in Brisbane</font>

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    Good to hear about your occupancy levels Trakka, do you self manage?

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