5 reasons to invest in student accommodation

26/09/2022
in Investing in real estate

Many students will be starting a new academic year today, the ideal opportunity to take a closer look at student accommodation. According to the latest research published by the CIB, the association representing the property sector, student accommodation in Flanders costs € 424 a month on average. We immediately started looking around ourselves and we found little or nothing in this price category.

Is buying more appealing or not?

If we look at rent prices in the broader context of additional costs like water, electricity and insurance, we can see that you have to have a certain amount of income or capital so that your son or daughter can leave home to study.

If this is a recognisable situation for you, it might be an interesting proposition to buy student accommodation: you’ll get something back on your child’s education in the long term, and your investment will even earn you an impressive return.

If you are considering buying, it’s not just the high cost of rent that makes it attractive. We can offer five more reasons:

 

  1. Putting your money into a savings account hardly makes anything, investing in property, on the other hand, does, and without risk. The price of buying a house or apartment is too expensive for a lot of people, but you can buy student accommodation at an affordable, entry-level price, so that this means of investment is accessible for many people.
  2. Many, many students go looking for student accommodation every year. You could even say that there is always a rush, so your student accommodation is rented in no time. Another thing is that once students find good accommodation, they stay there for the whole course of their study. The corona crisis had hardly any effect on the rental of student accommodation in the previous academic year, students kept renting, which is reason to have confidence in the future.
  3. The return on a student bedsit is 4 to 5% as a rule, which is higher than the return on the rental of a residential house or apartment.
  4. You can opt for an investment in several student rooms and combine rental with using them for your own children. Your child can then study without having to pay for rent, whilst you can bank the rent paid for the other accommodation.
  5. Property values keep going up, and that applies to student accommodation as well. You can always sell it again at a profit.

 

To ensure that our student accommodation is even more attractive, we look for long-term leases, preferably combined with management to take care of everything, so that the investor doesn’t have the bother of that, not even the administration.