Property developing - Follow the universities

Follow the Students With property developing, it pays to follow the students. If you are in the buy to let market, it can be a great idea to buy properties near a university. Many parents are renting flats for their children and even some students with part-time jobs join up and rent their own flats or small homes together near the campus. This means there is a great market near campus and universities for someone looking to invest in a good buy to let piece of real estate. However, you may notice that properties near universities are expensive and may be more expensive than an equal valued property in another location. How can you know if this is a good purchase to make? There are different factors that go into making your own personal decision about what to invest in but in general, it pays to follow the students. Your first step should probably be to research the market in the particular area you are considering investing and also research the university that is in that area- how many students does it typically have, what ratio of these live off campus, etc. You also need to understand the benefits to buying near campus even if the property costs more than you would usually expect to pay. Why Buy Near Campus So why should you buy houses near a college or university campus? When you think about it, the logic makes perfect sense. Students are always going to be attending college and those students will always need a place to live. Not everyone can live on campus of the university and not everyone wants to. Some students prefer the privacy and independence of living in their own place. Others choose to live near campus instead of on campus because it is easier to get to part time jobs or other activities. Whatever the reasons why students live there, properties near universities will always be greatly popular. Since there are classes happening at college all year long except when on holiday break, you can pretty much guarantee that your property will remain occupied at all times as well which is just another advantage to buying near universities. Buying to let near a university can be a great investment to keep your property occupied and to make money from students (or their parents) who need to live near the university they are attending. Don't forget however, that you will need to maintain the property and that sometimes college students do not take the best care of their flats or homes so be sure you have the proper contracts and other legal protection in place. House Prices Near universities in the UK What kind of prices are you looking at when buying a house near universities in the UK? Over the past 5 years or so, these house prices near most of the UK's biggest universities have climbed to surpass average UK prices for property. In some cities, the prices have increased 50% or more in these college towns and many expect it to continue to climb. In fact, many of the house prices in university towns are so high that parents looking to get a place for their children are forced instead to rent a flat or home near the campus. Many parents are opting not to buy a flat for their student in university but instead to rent, especially since the student may only be there for a short amount of time. All of the 10 most expensive university towns in the UK are found in Southern England, with Guilford reported as having the highest prices (according to the Halifax). You can expect to pay around £363,503 for a home there and anywhere from £326,403 to £343,332 at other surrounding areas such as Winchester, Bath and Belfast.

Posted in Articles from 2009