Research from Landlord Mortgages shows that parents who choose to buy a property for their child to live in while studying could make profit of almost 20,000 over the three-years of their child’s degree
The rersearch also shows parent’s whose children study in London can make the most profit if they buy and rent out two of the three bedrooms.
However, parents of students in Guildford, Bath and Bristol can also expect to see healthy profits of over 10,000 in just three years.
Purchasing a property for your child while they are at University also holds other advantages such as control over the security of their accommodation, type of flat mates and level of rent.
And the property doesn’t need to be sold once the child has left university as, if a parent chooses to, they can continue to let it out to students and use it as a long term investment for their retirement.
Lee Grandin, managing director of Landlord Mortgages, says: “With stiff competition for rented accommodation in university towns, investors are faced with a captive audience, meaning that this type of buy-to-let investment can prove highly profitable.”
“It is true that property prices are high, particularly in London. However there is still definite scope for profit, with predicted house price growth and steady rental yields. These two factors combined make for a solid investment and one well worth considering before your child starts down the road to higher education.”