GK Student

FAQ

Below are some of our frequently asked questions, but do not hesitate to call or email if you have any questions of your own and one of our helpful team will answer these for you

WHY SHOULD YOU INVEST IN STUDENT PROPERTY?

Purpose built student accommodation (PBSA) has consistently been one of the best performing asset classes over the last 20 years. More so, there are many projects that offer different features helping you find the right project that suits your needs. As with all investments, yield and return can go up and down. History is not an indication of future performance and you should do your own research into this asset class to ensure it is right for you.

WHAT ARE THE DIFFERENT TYPES OF STUDENT PROPERTY?

There are four typical forms of student housing accommodation, including standard student pods that resemble university halls, student pods with an ensuite, luxury student apartments and also single rooms to rent within a House of Multiple Occupation.

IS STUDENT ACCOMMODATION A BETTER ALTERNATIVE TO RESIDENTIAL BUY-TO-LET?

Generally purpose built student accommodation is fully managed by the developer. This means that you do not have to find, check, replace the tenants yourself.  Yes, rents are higher – rental yields for PBSA are often higher for student housing than for a standard buy-to-let. In some cases we have seen yields as high as 8% depending on the area.  As Purpose built student accommodation (PBSA) is hands off most people do not find themselves geographically locked. If someone is looking for a residential buy-to-let then they would tend to look closer to where they live.  This works out well in the most part for the UK.  Often people in the south would find it too expensive for a residential buy to let in the south but with PBSA and its hands off approach, it is easy to take advantage of cheaper PBSA in the university cities of the north.

HOW ARE RENTAL RETURNS PAID?

Rent is usually paid into your bank account quarterly – but this is can be discussed with your consultant and contractually confirmed by your own appointed solicitor.

IS INVESTING IN PBSA A REGULATED ACTIVITY?

The buying and selling of Purpose built student accommodation (PBSA) does not constitute regulated activity under FCA rules. As such, clients will not be afforded the protections available under the rules of the FCA and will not be eligible for compensation under the rules of the Financial Services Compensation Scheme (“FSCS”).  As with any non regulated investment you should seek professional advice and appoint your own solicitor before making an investment.