Despite the hike in stamp duty, it has been revealed in recent research that over a third of student property investors intend to grow their portfolios in 2016 by acquiring more student properties.
The research, which was carried out by The Mistoria Group, reveals that 10% of student property landlords state that their HMOs have enabled them to offset the new tax rules and stay profitable. 50% of student property investors also believe that there is no other asset class that delivers the yields and ROI that you can achieve with student property.
So, although the traditional buy-to-let market may be a slowing a little, student property continues to gather pace and outperform all other asset classes.
Interestingly, the research also identified that 35% of student property investors purchased HMO properties before the stamp duty hike kicked in. And, despite the rise, a further 43% told the researchers that they plan to purchase two or three more student properties over the next 12 to 18 months.
Demand for student property is high and the yields are attractive because students tend to settle for less space than other tenants and occupancy rates are really high. Over the last 5 years student property has proven to be a very consistent, strong performing asset class that has been virtually recession -proof ( it has been proved that more people go to university during economic downturns).
The increasing number of students from both home and overseas has created a strong need for high quality HMOs and PBSA (purpose-built student accommodation) and this represents a superb opportunity for investors who are looking to grow their portfolios or first-time investors who are looking for hassle-free, hands-off investments.
If you would like to know more about how you could grow your portfolio through student property, please contact us now.