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chronyx

Cash In On Student Btl!

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http://www.moneywise.co.uk/home-mortgage/letting/cash-the-student-buy-to-let-goldmine

Still at least this gives a good indication of how to treat the rest of their advice...based on what I've read here recently about fail to let student digs.

Here's student BTL being pumped again by the Telegraph's latest banker stooge, Richard Dyson:

Top ten cities for student buy-to-let

Glasgow tops returns in a new ranking of student property investment hotspots.

Northern cities including Glasgow, Manchester and Hull are emerging as the highest-yielding destinations for student landlord investment, a new study has found.

The latest data from property website Zoopla takes average asking prices for four-bed properties within major student centres, and compares these with average student rents achieved. This gives a gross yield.

Glasgow comes out top followed by Hull and Manchester. The lowest-yielders are London, Bristol and Lincoln.

In general yields are lower than landlords claim to be obtaining from other types of buy-to-let investment. But one of the attractions of student letting is the resilience of demand. This means void periods - when properties aren't let - can be reliably minimised.

Zoopla's research contradicts reserach by other property firms including upmarket agent Knight Frank, which found in an earlier report that London was most profitable. This took into account capital growth, however.

In recent years much new, specialist student accommodation has been built with developers taking investors' cash upfront. Investors typically own a room or flat within a larger complex and draw an income after management and other costs have been deducted. Much of this development is focused around London and offers comparatively luxurious accommodation, aiming to capitalise on wealthy students from overseas. Property sourcing firms have promoted these widely to income-seeking investors as easy, "armchair" investments - to the extent that warnings have been sounded. Such investments are not regulated.

Lawrence Hall of Zoopla said: “The largest number of students or most prestigious university clearly isn’t necessarily best for investment returns. Landlords need to do their research and take into account the student demand, property supply, average property values and average monthly rents. There is no apparent North/South divide when it comes to student buy-to-let investments and a number of towns in the North are showing higher gross yields than the South as a result of property values having remained lower over the past few years whilst rental demand has increased.”

Eralier this month research by landlord body the National Landlords Association found students among the most reliable tenant groups.

Students are least likely of all tenants to miss a rental payment, the NLA said, with just 38pc of student landlords having experienced arrears in the last year. This compares to 59pc of landlords who let to blue collar workers and 71pc of landlords who let to benefit recipients.

Student_Yields_2682132c.jpg

Reliable nature of demand? At a time of unprecedented cost of education?

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Here's student BTL being pumped again by the Telegraph's latest banker stooge, Richard Dyson:

Reliable nature of demand? At a time of unprecedented cost of education?

I believe most student tenants have to have guarantors,which may explain why they don't miss payments.

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My mum had £250, 000 invested in student property funds **Kay Brandow (intentional spelling mistake), I got her to take it out which she did a few years ago. Took absolutely ages to liquidate and the tax bill was £30, 000. Ok she might have held on for a while longer and called the top but this is bubble trouble IMO

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