- LouieroMember@louieroJoin Date: 2011Post Count: 6
The catch from my asessment of these types of properties is that the capital gain is minimal over time but it's a nice little money spinner. Anyone else have thoughts on these types of properties.fWordParticipant@fwordJoin Date: 2009Post Count: 471
With the strength of the Aussie dollar I would think that the number of students coming here would be much reduced. If this is the case then you may have trouble renting out your property.Ryan McLeanParticipant@ryan-mcleanJoin Date: 2010Post Count: 547
Just note that though student properties may appear to have a high rental return they are often vacant for 2-3 months of the year when the students are on holidays.
This can put a strain on your cash flow.
Not saying don't do it, just saying that this is something to be aware of.v8ghiaMember@v8ghiaJoin Date: 2005Post Count: 871
Hi Luiero…….my opinion only – No.
Finance is usually a lot harder to get too, depending on size of property.
CheerssonyasalMember@sonyasalJoin Date: 2008Post Count: 421
HI, i have been looking at buying an old nursing home that has a large kitchen 16 rooms and a number of bathrooms and setting this up as student accommodation. Any thoughts? My niece is off to uni this month and her accommodation costs are $200/week with 4 other people in a five bedroom townhouse, this includes utility costs.She is responsible for her own cleaning of the house along with her housemates. She pays rent for the whole year, rather than not paying for two or three months as mentioned above. So the figures outlined above look pretty good to me. $1,000/week rental income on a five bedroom house. If i was charging the same amount for a 16 room set up then that would be $3,200/week.
Let me know what you think, i would really appreciate any comments from someone who has invested in a similar set up.Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539
Students are not the only demographic that require basic or short-term accommodation. For example, people employed in professional roles that are moving interstate ad are looking for somewhere to live for a while… or in fact professionals just looking for a room in a house for a long while, but don't want the nuisance of a regular sharehouse where the divvying up of bills is a battle.
ps have you checked with council to see what zoning the property is sitting on, and what types of uses are permitted?
Another thought is that you could advertise rooms on the Stayz website as basic holiday accommodation…Property investingParticipant@property-investingJoin Date: 2011Post Count: 1
Reading the comments about student accommodation, i have two IPs which i rent out by rooms (not always to students, mostly to workers) and i find that the rental income is far better than renting the whole house out, however, the lender refuses to revaluate the property so we can restructure the loans to extract the extra equity for the next IP purchase. Would you know how to get around this issue ? Thank you,
AnneAlistair PerryParticipant@aperryJoin Date: 2004Post Count: 891
No, unless you get them for a ridiculously low price. For most investors they just tie up equity and stop them from doing other, more profitable things.Ryan McLeanParticipant@ryan-mcleanJoin Date: 2010Post Count: 547