Hi All,
Do any of you have any experience or thoughts on 'student' accommodation????
I have found a unit in a complex of 24 that is being sold as student accommodation. The complex is very close to a major university and the entire complex is student accommodation with on-site managers.
The rent is quite high, although the agent told me it is usually tenanted 45 weeks a year, however, with the high rent, still makes it attractive.
The management fees are 7.5% + gst which is nothing too excessive.
The upside I see is the high rent.
The downside I see is it would not be suitable for a family to live in, only students. I don't know if this will affect potential growth or make it harder to sell if need be.
Any advice?
Thanks,
Simon.
Because only students can (practically) live in it, you'll get a lower LVR, only 60 or 70%. For me, that's the main disadvantage.
Thanks Trakka, I didn't realise that…..
There is many posts regarding purchasing student accomodation as investments on this forum. Try doing a search, a problem that comes up alot is a lack of capital growth.
Cheers,
Chris.
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