CASHING-IN ON STUDENT ACCOMODATION BOOM
Rising demand for student accommodation is creating an opportunity for savvy parents and investors to cash in from properties that are in close proximity to the country’s tertiary institutions.
According to Park Village Auctions’ Jaco du Toit, students from across the country will soon diverge on our Universities and Colleges and will be looking for suitable accommodation close to the available amenities. “This annual influx from all corners of the country actually holds many opportunities for investors and is most certainly among the most common property types that investors try to include in their portfolios.“Simultaneously, parents sending their children to far away learning institutions are well advised to look for a student apartment to buy that is close to all the facilities and that will appreciate value at the end of the child’s learning. At this point the property may be sold or may continue to be rented out and earn an extra income to recoup some of the money spent on children’s education,” says Jaco.
He adds that it is a good idea to look at buying rather than renting, as money spent on paying for the property can be retrieved whereas rent money is expensive with very little upside. Whichever way, student accommodation is a great investment and an equally successful means of growing wealth provided they are well situated, well maintained and purchased at the right price. “We always advise parents and investors to keep a close eye on our property auctions to find a property that is right for you.”