Student Accommodation - Good or Bad?

Has anyone thought about buying a apartment for Student Accommodation?

Great return for the money you invest, what are the negative & positive outcome?

Thanks

 

Cons

• In student accommodation blocks, the on-site management fees can be expensive and will eat into your returns. It’s critically important that you check out all the fees associated with buying in a student building before purchasing
• While there is strong demand in university areas, you might find turnover is high. As students form new friendships, they tend to change their living arrangements
• You might find maintenance costly, as younger renters can have a lesser sense of responsibility
• When you purchase a normal residential property in a known university area, there can be a stigma attached. If a suburb is known as a ‘student suburb’, this might be off-putting to future buyers and this will impact your capital growth
• There can be language barriers with overseas students. More than 35 per cent of overseas students in Australia today are from China or India, according to the Immigration Department. Overseas students might be unfamiliar with Australian law and their obligations as tenants
• Students love to party – and why not, these are some of the best years of their lives so there’s plenty to celebrate! But this isn’t so great for investors, who might find themselves on the black list of neighbours due to noise issues!
• Students generally leave town between December and February to return home for the holidays, leaving you with a significant vacancy period.
John McGrath.

 

Low or no CG. My in laws bought Unilodge at Broadway. Good CF. Zero CG. That's Unilodge.

 

Good CF?

 

CF = Cash Flow

 

Worth buying a decent IP near university,if bought well.

Can be rented to students or academic staff!

 

Unilodge at Broadway always have apartments most under around the 180k mark....just as they have been the last 10 years ir so.

 

Yes, hovering around 200k.

 

http://www.realestate.com.au/property-apartment-vic-bundoora-120160045

BC Fees $4500 PA

 

Tell 'em their dreamin'