#AskaUKPropertyExpert – Will I make money when I need or want to sell?
Hi, how easy is it to sell on student property? And what kind of sales price can I expect as a return?
Although a key benefit of owning residential property is that it can often be sold on for a considerable profit if carefully selected in an area with flourishing fundamentals; that is not to say student property cannot achieve similar rates of capital growth.
If the development is well-managed and in a good area it can be re-sold for a profit too. UK property investment company One Touch Investment recently assisted an investor with a resale of a UK student property investment. The investor needed to release some equity so had decided to sell on two student units in Liverpool. They were originally purchased at £53,695 and £55,395 respectively, with both fetching a 9% yield. The units were sold on for £57,500 and £59,000, meaning that the investor made a profit of 7.1% and 6.5% respectively.
Property investments that are carefully selected in areas of good growth and high demand should fetch good returns, and these often perform better than other asset classes. There is clearly a demand for these investments, as the resale example has demonstrated.
Note: According to a whitepaper released by Savills in March 2017, at least 300,000 new homes per annum must be built in the UK to really address the housing shortfall. Political parties have promised the construction of 200,000 (only 2/3 of what is needed), and have consistently fallen short of this figure for over a decade. Looking forward it is highly improbable that supply will ever catch up with the need for such property in the UK, which in turn should keep prices relatively buoyant and resilient.
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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.