IP student accomodation

C

Crankshaw

• 26th Feb, 2015

• #1

First time poster here, but have been a lurker for a little while

have been looking for some time now at getting into the property market, there seems to be a number of purpose built student accommodation (4 br, 4 bathroom, 1 kitchen, 1 lounge etc)) near universities (in qld), one place that caught my eye has an asking price of $196,500, returning, after outgoings, $18,919 per year,

Looking at longer term investment

Thoughts ?

 

A

A Jeremy

• 27th Feb, 2015

• #2

There's nothing wrong with renting a property to students as long as you are aware of the pros and cons of the demographic of tenant that you are renting to. I'm stereotyping here but typically students like to party, generally aren't too responsible and can sometimes neglect a property.

As a rule I like to keep my properties as bulletproof as possible and picking tenants is like a box of chocolates but on average you can compare students to DINKs, families, retirees and any other demographics to discern risks vs rewards.

That's not at all to say that you won't get tenants like my last lot of students whose neighbours thought the property was empty because they were so quiet.

 

R

Rolf Latham

• 27th Feb, 2015

• #3

Crankshaw said:

First time poster here, but have been a lurker for a little while

have been looking for some time now at getting into the property market, there seems to be a number of purpose built student accommodation (4 br, 4 bathroom, 1 kitchen, 1 lounge etc)) near universities (in qld), one place that caught my eye has an asking price of $196,500, returning, after outgoings, $18,919 per year,

Looking at longer term investment

Thoughts ?

Click to expand...

4 bed 4 bath for 200k

can I have 50 of em pls

ta
rolf

 

C

Crankshaw

• 27th Feb, 2015

• #4

these are 3 story, purpose built, units, onsite management ect.

 

H

hugh72

• 27th Feb, 2015

• #5

Management fees? Can they be rented to anyone other than students? Might limit potential for growth if they are only available to a limited section of the market?

 

W

willair

• 27th Feb, 2015

• #6

Crankshaw said:

(4 br, 4 bathroom, 1 kitchen, 1 lounge etc)) near universities (in qld), one place that caught my eye has an asking price of $196,500, returning, after outgoings, $18,919 per year,

Click to expand...

Would depend on the location ,would be interested to know where this type of property is located,..

 

H

hugh72

• 27th Feb, 2015

• #7

Just re read your OP it's post all out goings including onsite management fees. What's the catch?

 

C

Coxy89

• 27th Feb, 2015

• #8

What university is it close to? Gatton? 4, 4, 1 for $200k yes please.

 

ej89

• 28th Feb, 2015

• #9

Ask the agent to get you all the fees involved. I looked at em a couple weeks ago. The agent takes it off and relists em every 2 weeks to make it look like its only been there for a bit. Get apm or rp data report and it'll show you owner probably has tried selling it for 5 years..

Also, after all the fees the yield ended up at 9% which isnt worth buying because you can buy other units that are 7-8% and can be tenanted by anyone and sold to owner occupiers

 

C

Crankshaw

• 28th Feb, 2015

• #10

Sunshine coast, near the uni up there, and it is student only accomodation

 

C

Crankshaw

• 28th Feb, 2015

• #11

from the agent

 

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ej89

• 2nd Mar, 2015

• #12

Keep in mind you need a 30-40% deposit. Banks hate student accomodation

 

C

Crankshaw

• 8th Mar, 2015

• #13

for the asking price, I would seriously consider just paying cash :shrug: