Landlords could well be missing out on the blossoming student rental market sector as they are unaware of the potential returns on offer. According to a new report recently released of existing landlords over 28% said they were completely unaware of the potential returns this type of letting can produce. The number of students is rising at a rapid rate and over the next decade the figure is expected to double. One other very important factor many landlords miss is that the UK is becoming a very popular destination for foreign students which again is a very lucrative market. The 5 main reasons to consider this type of business: High yields: Depending on location between 8%-10% net yield is possible: Managed & Maintained: Plenty of very good local companies with experience in this type of letting: Demand: Rising student levels means there is always a demand for this type of property: Shifting priority: Students have shifted since the rise of tuition fees to private shared letting: Options open: Any landlord interested in this type of business can invest: Buy-to-let choices grow: Competition has grown over the years in the buy-to-let market as providers fight for the business. More and more products hit the market place on a daily basis with figures now showing over 1000 are available. The fastest growing area of the buy-to-let market is currently fixed deals, as the threat of rate rises are still looming for next year. The lowest interest rate mortgages and fees are reserved for low loan to value ratios. So basically the larger the deposit level you have the better the deal that can be achieved. Having said all this there are still some exceptionally good deals available for those with a lesser deposit level. Help: If you require assistance with your mortgage planning please do call one of our fully qualified advisers who will be happy to assist.
