A Realty Today article dated February 1, 2014 goes into detail about how lucrative it can be to invest in student housing. Many university students, after all, need nearby lodgings of their own outside of campus, and nearby property owners can certainly capitalize on this necessity. Here’s what the article has to say:
Recognizing this need, real estate experts have shifted their focus to projects that provide accommodation for students. One of the biggest advantages of investing in such projects is that these accommodations don’t require high-class amenities and hence, attract low investment. In spite of this, the property owner can expect high returns, even during recession. Contrary to this, other residential properties require good amenities and services in order to guarantee good returns, while in properties that provide student accommodation, the services and amenities are less but the rents are high. If any additional amenities are provided, property owners usually charge students extra, which again is beneficial for them. Returns of investments are faster in the student letting market, resulting in its further growth.
College Station’s own Texas A&M University could benefit from additional housing options for its students. Meanwhile, surrounding retail and commercial establishments such as cafes, restaurants, and bookstores would benefit from the presence of student residents. The profit potential of such College Station real estate opportunities is certainly not lost on savvy investors.
Commercial real estate can be the perfect investment for those who know how to identify and answer the demand for specific housing needs within the community. However, snapping up any available property without careful consideration for location and other features simply won’t do. Luckily, a College Station real estate expert such as the Traditions Realty Team can guide interested investors toward the right property investment decisions.
(Source: The Growth of the Student Lettings Market, Realty Today, February 1, 2014)