More and more parents with children going off to University are investing in properties for their children to live in whilst they are at University than ever before, helping them to potentially recoup their investment when they sell, rather than wasting money on rent. With souring rental prices across the UK, paying a mortgage might be cheaper.
Choosing to buy a 2 or 3 bedroom house or apartment also opens up the possibility to rent out to other students at the same time, to help cover the monthly mortgage payments, but remember to ask your mortgage about their rules about renting out a property.
With interest rates on savings still giving a low return, investing in bricks and mortar for the next few years, whilst your child is studying could offer a really goodinvestment opportunity. The rental market is currently suffering from a shortage of available properties, so investing near a tourist University town, a new home could offer you two types of rental possibilities, renting out to students during school term and renting out as a holiday lets during the summer. However the type of accommodation you would offer students might not be of the same standard you would offer to holidaymakers.
Buying a new build, would also keep down costs over a three year period, as maintenance costs would be much less in most cases.
If a property does increase in value within your child’s University time, the money could then be used to pay off a part of the students loan at the end of their studies.
If you would like to find out more information about a property investment, then why not pop into your local branch of Intercounty.