A recent survey found a massive two thirds of parents are considering investing in buy-to-let student properties in Liverpool to assist their child through university as fees and costs of living become more and more daunting.
The rising price of rent as well as high fees is making university a harder and harder prospect for many students who can often struggle to make ends meet with just their maintenance loan and a part time job.
The online mortgage broker Trussle found 66% of parents believe helping their child via purchasing a buy-to-let student property was a smart idea.
The idea is to let their child live in the property while they were at university for whatever in-house rent the family agreed, hopefully lowering their living costs.
Once their child had finished their course and were ready to move onto the next stage of their life the parents would then be able to rent out their house to other students and begin making returns on their investment.
The survey of 2,000 homeowners even found 53% of parents would consider downsizing their family home to help support their child through university.
Parents are not wrong that student buy-to-lets are a sound investment at the moment for the past few years they have outpaced the rest of the rental sector, with yields growing by as much as 17.86% larger than the rest of the rental sector.
The value of the private rental sector as a whole has also soared recently.
According to the Shawbrook Bank the total value of the private rental sector rose by 5.8% between August 2020 and August 2021 to a total of £1.4 trillion.
This is lower than the general rise of all properties which increased by almost 10% in the same period.
Shawbrook bank also found demand for rent was soaring with 42% of landlords saying they had more people than ever looking for a property, with a third of landlords adding they are looking to add another property to their portfolio in the next year.
Trussle did note in their survey that tax changes had skewed against landlords in recent years making buy-to-let investments not the super lucrative investments they used to be.
However, Miles Robinson, head of mortgages at Trussle said their data showed “that property is still seen as a safe and reliable way of generating extra income.”
The investments also make sense in the medium term through rental income and in the long term through the rise in property prices.
So, although the cost of entry may be higher than before, and the returns may not be as massive, there is still a huge demand for rental properties plenty of room to grow and huge amounts of confidence the rental market will remain strong.
One way to maximise your returns is to get the best advice on where to invest and how to manage the property.
The multitude of taxes and regulations that come with managing a buy-to-let student property can be mind boggling at first and this is where Mistoria can help.
Mistoria manages 1000 properties in the private and student rental sector and is a specialist in helping investors interested in getting involved in the market.
On top of this Mistoria can also give advice on where to invest, the dozens of university towns and cities across the UK present plenty of options but some offer vastly higher returns than others.
Rents may be high in London but property prices are even higher.
Whereas student properties in Liverpool and places like Manchester, Bolton and Salford, property prices are low but the ever-increasing student population means yields are only going to increase over time.
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