Student Accommodation Investment Benefits from Low Risk Status

Student accommodation investment is a low-risk investment. So, as we are currently operating in a risk-averse investment environment, obviously student accommodation investment and other products like it are attracting more than their fair share of attention and investment.

Now, no doubt some (hopefully not many) people will have scoffed at the words "low risk investment" in the first line. That serves to prove the risk adverse environment that the credit crunch and the damage it did have given birth to:

During the last boom practically every property investment product on the market was being bandied about as having very little risk attached to it, as many people even grew sufficient Gaul to state unequivocally that property could no longer lose value, because of the international demand characteristics that emerged from budget flights etc. So now calling any property investment product low risk is liable to get people's backs up

However, when it comes to student accommodation investment, the term low risk is applied because:

You have a large pool of potential tenants, all of which need somewhere to live, and all of which are being driven to the purpose built accommodation that these investments exist by a multitude of reasons: affordability, their friends living there and the facilities, but mainly because of the affordability factor.

Also because the universities are actively promoting the property for you, out of all that, student accommodation investments are low risk because they have a set term for which occupancy can almost be guaranteed, in effect a yield as close to being guaranteed as you get in UK buy to let property investment.

According to Property Frontiers, who have recently entered the Liverpool student accommodation investment market, the field is seeing a massive surge in popularity. The firm has just sold out a development in Liverpool, and is currently marketing a second, the Streatlam towers development. In a recent press release, David Cox, director of the firm said:

"People are back out there and making property investments again. Just like people were investing in property in 2006 and 2007, but that is where the similarities end. In 2006 investors were chasing hard for the biggest returns, and desire to make a fortune superseded common sense in a lot of cases. Not today it doesn't. Those who are investing in property today are putting safety first and doing extensive due-diligence before making any kind of commitments."

In fact, when it comes to student property investment, their success is a testament to the quality of the product. We all know that the market is currently very adverse to risk, and that every investor is scrutinising everything to the finest detail before putting anything in. So, knowing that, and looking at the success of student investments, we can judge their quality.