A property will always be a sensible investment asset. However, the choices available are changing as the risk and reward in the alternative asset class opens up new opportunities. You can reap the rewards of the underlying hands-free asset: PBSA
The UK has long been hailed as one of the most stable and successful markets for property investment making it popular among overseas investors. The UK is a fantastic market to invest in for many of the reasons that have historically driven demand; governance, a solid legal structure, education, population and economic growth.
However, instead of investing in residential assets with your next investment opportunity, it may be worth switching into alternative options within the UK that will increase your chance of delivering better after-tax returns than residential. One of the most popular non-residential property options is Purpose Built Student Accommodation (PBSA).
Nowadays, university students want city-convenience, modern amenities and facilities, comfort and quality accommodation. Gone are the days of students sharing a rundown Victorian terrace house somewhere near the university campus.
With consistent growth in the student accommodation market in the UK, Brexit has shown how major events can impact the net asset value of the broader residential property market.
PBSA rental income grew about 3 percent per year and the demand in this asset class resulted in healthy capital appreciation as investors were prepared to pay higher net income. PBSA investments offer investors a hands-free property management service, sourcing tenants and up-keep of the property.
Investors are reaping the rewards of a superior return, but of equal importance, they truly invested in the underlying asset and in a sector not correlated to the market. Make 2018 the year you consider how best to structure your real estate investment portfolio in light of constantly evolving markets and new opportunities.
With investment opportunities starting from £57,950 for the largest and most-desirable new PBSA in the Knowledge Quarter, we’ve experienced a fantastic response from worldwide investors.
Located in close proximity to the city centre, connected to key infrastructure transport links and in an area which is receiving over £2 billion of development, The Rise is a 3-minute walk from the new £500m Royal University Hospital.
The Rise will be a fully managed and maintained by a dedicated on-site management/ maintenance company and is scheduled for completion Q2 2019. The management agent has already secured 100% tenant occupancy for the September 2019 student intake making it the ultimate ‘turn-key’ property investment.