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#AskaUKPropertyExpert – Does student property work well for overseas investors?

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Q

Hi, investing in property overseas makes me nervous as I am doubtful of my capacity to manage it as well as I am able to manage my local portfolio simply due to me not being physically present. Is this one of the advantages of owning student property for overseas investors, and what other advantages do student property investments have over residential investments? Thank you – Pieter

A

Hi Pieter, Probably the biggest advantage of student property investments for overseas investors is the fact the property is managed by a company on the investor’s behalf. The job of finding new tenants, exchanging contracts and the day-to-day running of the development will be undertaken by the management company, which is ideal for overseas investors who cannot be physically present to do these things.

Another reason why student property investments suit overseas investors well is the fact that student property tend to have a lower vacancy rate. This is a particular advantage of student property when compared to residential property investments.

The lower vacancy rate translates into a consistent income stream for the investor; students will find something suitable and settle, whereas tenants staying in residential property may move if their work dictates it, or if they have a change in personal circumstances.

Note: Investors can take steps to minimise the detrimental effect on the property being vacant though, as rental insurance can cover the 3-month period until eviction takes place and squatting is now illegal.

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Who is Arran Kerkvliet?

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One Touch Property has been helping people invest in UK property for the past 8 years. Arran Kerkvliet, the investment director, is originally from South Africa and has a degree in Economics and property valuation. He is keen to share some of the common things to look out for before investing in UK property. His company sources a wide range of property including student accommodation investments, high yield property such as hotel rooms and buy-to-let investments for people looking for income producing investments and diversity to their property portfolio.

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