Solution for buying student property – Shares?
We have just sold several buy to lets we have had for a long time. We are looking at re-investing with minimum hassle running of the investment
There are plenty of schemes around which get you to buy a student pod or a room in a hotel, or even a parking place. Some of them “guarantee” a fixed rate of return. Almost none give a means of cash in other than sale in the market place
Assuming they can deliver the returns, there is the question: will there be a market for these now or in the future? if so what will their value be?
I suggest they will be short term gain long term pain.
Remember time share anyone?
So have I got a potential solution? Yes. Basically, buy shares in a company which owns or acquires the whole property which will run the development and have a shareholder agreement to sell after, say, ten years. In the meantime, the shareholders get dividends.
I would like to invest in student property on this basis.
Quite a lot of student property does not allow borrowing (probably because of lenders not being willing to lend or the mortgages reducing the freeholders value)
Here the company could borrow with a mortgage on the whole property if required.
What views do investors have?
Edwin
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HMO or What?
Member Since June 2013 - Comments: 3237 - Articles: 81
6:12 PM, 20th July 2018, About 8 years ago
I’ll comment on this to get updates on build to rent etc., As I guess some may talk about that.
I’d imagine the yields now wun’t be great with all the tax and legislation on rented stuff at moment.