Buy an apartment to rent it out? This option is as old as the world and as reliable as Swiss watches, but not affordable for everyone. Investing in an apartment is a solid way to generate regular income apart hotel and alternate business with leisure? A nice combination of pleasure with benefit. Think there are no more ways to earn from rental? Think again! These are far from all options that will allow you to generate stable income. We bet you didn't even know that you can make money in the real estate market by having the desire to grow and learn something new. The desire of others, but these are already nuances.
How the dormitory turned into a golden mine for the landlord
Famous British universities provide their students with the best education in classical traditions and modern technologies. There is no shortage of applicants even for the fee-paying departments. Only a small number of students can afford to study from home, while the vast majority have to squeeze into dormitories where there is barely enough space for everyone. The issue of accommodation is more relevant than ever, so private developers have decided to add dormitories to their portfolio, which is unusual for them.
Developers carefully plan and build complexes that meet all the standards of student dormitories. They enter into a contract with a management company, and often even establish it themselves. In this way, the investor receives a small apartment (or apartments) for their money, along with a management contract real estate management in a few years, the investments will return with interest, although you will not have to make any effort for that. And this is not even the main advantage! In the UK, there are over 100 prestigious universities, the number of new students in which increases every year - no investment property can boast such a stable flow of tenants.
How an investor can become part of the student community
The trend of investing in student dormitories only appeared in 2023, although the need for them was felt long before that. In Britain, applicants from all over the world gather, and they all want to live near their alma mater. Such a location not only provides proximity to the largest educational institutions, but also to developed infrastructure capable of meeting the needs of a whole horde of students. Thus, cities such as: are most popular among investors in this new direction.
- Sheffield;
- Liverpool;
- Manchester;
- Oxford;
- Cambridge;
- and others.
There are enough apartments on the market to buy both in already commissioned dormitories and in projects that are in the initial stage of construction of primary and secondary markets. You know very well that the first option provides immediate results but requires significantly larger investments. That is why investors prefer the second scenario. Of course, it will require patience, but isn't it worth it?
Buying real estate follows a standard procedure, which we recently informed you about. Sales can be made through either an investment company or directly through the developer. Since apartments in a dormitory are essentially the same as apartments in a multi-apartment building, a leasehold agreement is signed, which corresponds to a long-term lease. The term of the agreement is set by the developer and can be either a decade or 999 years.
We hope you remember that you can't do without a local lawyer. He will help with legalizing the purchase and will accompany you at all stages.
- Object inspection and pre-contract signing.
- Evaluation of the verification results and drafting of the sales contract.
- Transfer of a down payment in the amount of 10% of the object's value.
- Signing the final contract and handing over the remaining money.
- Transfer of ownership rights to a new owner.
Don't forget that you need to budget for additional expenses, such as registration and stamp duty fees. Speaking of the financial aspect, it is important to note the price of apartments in student dormitories. The average cost starts from £70,000. For this amount, you will get a standard 20 m² apartment with ready-made repairs and furniture. Like in all dormitories, the bathroom will be shared. Developers often place not only kitchens and dining areas, but also recreational, sports, and leisure areas on the complex grounds, which increases demand among students, so pay attention to these nuances.
