- MAK77Member@mak77Join Date: 2008Post Count: 4
Has anyone had any dealings in student accomodation??
just want to know if they are worth looking at or is there no potential in themJon ChownMember@jon-chownJoin Date: 2007Post Count: 254
From my experience, student accommodation units usually provide higher than average income returns but lack capital growth.
JonXeniaMember@xeniaJoin Date: 2002Post Count: 1,231
We rent and manage around 20 student accomodations at the moment. Not units, but normal residential property that is rented out by the room. We have a brochure on our website that you might like to look at. http://www.adprop.com.au . Otherwise email me [email protected] and I can send it out to you.god_of_moneyParticipant@god_of_moneyJoin Date: 2008Post Count: 970
it offers higher return than average, but beware of holiday period (Dec-Jan). I would be disagree that it offers less capital growth.
Look at suburbs of Kingsford, Kensington and Randwick @ UNSW. Again, it depends where u bought it.
DonMAK77Member@mak77Join Date: 2008Post Count: 4
The area we are looking at is in QLD and the suburb around this has taken of and it is not far from the ocean which is a plus.
The property Management are trying to incorporate into the lease that December is included in the lease term were at the moment it is only rented for 43 weeks and occasionally for the rest of the year to holiday goers. This puts the units very close to positively geared.newbi2Member@newbi2Join Date: 2008Post Count: 227
You also need to check out the insurance. It falls under a different catagory to normal rentals. Also double check that it is listed as such a rental with council. There are different fire codes etc that need to be addressed if there is more than a certain number of unrelated persons in the house, ie less of a straight residential and more towards a boarding house scenario.
That said, I have friends who have a 5 bed and a 4 bed, both a +ve and both have experienced CG.
MickRuprect444Member@ruprect444Join Date: 2008Post Count: 1
We are currently trying to 'get out' of owning 'student accommodation.
For one, Students are notoriously late paying their rent.
No rental income between Dec – Jan.
Must pay fees to lodge a 'new' student each year.
Body Corporate fees are not as disclosed in original contract, keep going up.
No communication from Realty Firm that did the initial set up.
Rental Guarantee was forever late in being paid.
Very difficult to offload student accommodation if your situation changes, as very few people want to invest in property that is so limited "students only".
If this is not convincing enough, and you are still interested, contact me if you would like a student unit going for $130.000 in Hawthorn, Victoria.Reno QueenParticipant@reno-queenJoin Date: 2006Post Count: 62
We had student accom a few years ago. We charged by the room but it wasnt worth the hassle. We bought houses in QLD near the Uni ,
I wouldnt recommend it unless you really are prepared for the hassles