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cashinmattress

Student Landlords Can Buy Rooms To Let In New Halls

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The rooms are self-contained flats in a fully-managed apart hotel offering estimated yield of 11% and returns on investment of 28% over a 30-year term from £55,000 per room, claims the developer.

This is thought to be the first investment offer of its kind involving student halls.

The development at Crown Place, Bradford, is planned to offer 325 student apartments.

In the past, property investment firms have offered similar deals to investors – the most notable was the failure of Guest-Hotel, which went in to liquidation in 2008.

Guest-Hotel’s business model was to sell hotel rooms in developments.

One of the problems the firm found was the UK has no real market in selling on off-plan or completed hotel rooms and the units were difficult to value and unattractive to short-term investors wanting to buy off-plan.

Raising finance to buy in to an apart-hotel development can be difficult, meaning the outlay has to come from personal savings.

Providing HM Revenue and Customs is satisfied the property is not for the investor’s personal use, the property transaction can, in principle, run through a self-invested personal pension (SiPP).

Other issues for investors include who sets the rents and the costs of repairs and management services.

Other recent student developments include a 19-storey, 417-room student housing project in Tower Hamlets, East London.

Unite Group, the U.K.’s largest student accommodation provider, has picked up a £66 million loan from Barclays Bank to fund a 671-bed development near the River Thames.

Meanwhile, students in Oxford have camped out for several nights in the cold to head the queue for the pick of vacant homes in the popular Jericho neighbourhood in Oxford.

Student letting agent North Oxford Property Services had several shared houses in the area up for grabs to the first students through the door – and whoever was at the head of the queue also carried off a bottle of champagne.

I don't even want to start into how idiotic this is.

Poor kids these days, they are constantly being preyed upon. Guess I don't blame them for getting angry and wanting to smash things.

Edited by cashinmattress

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Architecture and medical students were being offered mortgages in the 1970s.

Hmm, well a childhood friend of mine, who went through to become a surgeon, got a platinum master card with $100,000 CAD on it in his 3rd or 4th year of uni.

He bought a brand new Porsche 911, and that was back in the early 90's, and in Canada.

I think that is pretty common for doctors across the globe; meaning the perks, especially for good grades.

Architects though, they are a dying breed, and their wages ain't great here.

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The rooms are self-contained flats in a fully-managed apart hotel offering estimated yield of 11% and returns on investment of 28% over a 30-year term from £55,000 per room, claims the developer.

You omitted the arithmetic.

An 11% yield on £55000 looks to me like just over £6k/year. With full residency and no voids that's £500/month, but more realistically £600+/month.

In Bradford?

Round here in Devon you could get a mid-market 3-bed house for that.

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What's the financial position of the University of Bradford?

Doesn't this yield revolve around the premise of their being a University in Bradford?

Or will housing benefits claimants cover it?

UCU rated University of Bradford as medium risk level due to the funding cuts. Link to that report

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What's the financial position of the University of Bradford?

Doesn't this yield revolve around the premise of their being a University in Bradford?

Or will housing benefits claimants cover it?

Bradford has a very large number of non univercity students as well. The Univercity only makes up 1/3 of ther student numbers.

I seem to remember reading that a new, modernised, city center two bedroom flat went for well less than £400 per month. You can get incredibly cheap accommadation in Bradford.

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Janet has got a certificate in executive secretaryship and a qualification in computing

What could go wrong?

Projected Net Yield up to 10% per year

Projected Net ROI up to 27% per year

Projected capital appreciation 6.5% per year

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Janet has got a certificate in executive secretaryship and a qualification in computing

What could go wrong?

Projected Net Yield up to 10% per year

Projected Net ROI up to 27% per year

Projected capital appreciation 6.5% per year

Invest with me and I'll off you a return of upto 25% per year (range -10% to 25%) totally misleading. Using the newly acquired skill the rule of 72 they are saying that the one bedroom er bedroom will be worth £110k in 10.5years time.

It's a lease so what's the service charge ? ground rent ?

If developer found 325 suckers then that's £18million for a building that cost ??? Any Quantity Surveyors ?

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You omitted the arithmetic.

An 11% yield on £55000 looks to me like just over £6k/year. With full residency and no voids that's £500/month, but more realistically £600+/month.

In Bradford?

no, I would think it needs halving, at least, mind you this is one way to extort cash out of idiot parents from the home counties

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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