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  • 8-12% NET annual yields
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Economies of scale – how they help eliminate extra costs

Commercial property investing tips in the UK
Jul 14, 2017

One of the features that attracts investors to our properties is the fact that there are guaranteed to be no further costs after purchase for the duration of the 10-year fixed income period – no management charges, no ground rent, no repair and maintenance costs, nothing.

It’s an unusual promise in this sector – here’s how we do it.

The best possible site at the best possible price

As always, location is everything. Together with our developer partner, our strategy for purpose built student accommodation is to be pretty much the first on the scene on prime, close-to-campus land.

This is why we avoid the usual, obvious suspects like London, Liverpool, Manchester and Newcastle. The development of student property in these places is rapidly approaching saturation and consequently any available land is a) hugely expensive and b) too far away from where students want to be to ensure long-term demand.

So we tend to go a bit off-piste and look for thriving university towns which are popular with students but which are chronically undersupplied with student accommodation.

Places like Bradford, Huddersfield and Stoke-on-Trent may not be high on anybody’s list of must-visit destinations, but they all have successful universities with large and growing student populations which are desperate for somewhere decent to live.

This allows us to negotiate for a prime site at a sub-premium price; then, with most of our properties consisting of 100+ units, we can spread that initial cost extremely thinly across multiple owners. In this way, our investors get access to the kind of postcode a traditional buy to let property landlord could only dream of.

There are massive savings to be made in multi-unit construction costs too, which we pass on as part of our high NET fixed yields.

Decor, furniture, fixtures and fittings

UK property investment advice

Just like when you go down to the cash & carry and buy a multipack of mineral water for below RRP, we buy everything in serious bulk. Not only is this economical, it also means your property is kept in peak condition.

Student accommodation is understandably subject to higher levels of wear and tear than the average family home; this is another advantage of the 10-year fixed income term. With a shorter term, the developer probably wouldn’t bother to replace a kitchen during the fixed period – with one of our properties, you’ll end your term with an apartment that has had a brand-new practically everything.

This can only add to your property’s already considerable resale appeal.


Onsite management

To a buy-to-let landlord, subcontracting property management to a third party can be one of the major outgoings and a consequent drain on yields. With our properties, it makes far more economic sense to have a professional management team onsite rather than parachute them in as and when necessary.

One of the reasons we can offer their services at no extra charge is that they are incentivised to make sure that the property is fully occupied. They are responsible for all letting, vetting and rent collection. To achieve this, it’s in their interests to maintain and repair the property as if it were their own.

They have immediate access to all central stores, so unforeseen events like a broken sink can be repaired the same day. They make sure they have priority access to a range of local contractors, suppliers and tradesmen, and ensure the best bulk deals on a range of essentials like broadband, Wi-Fi, insurance and utilities.

Find out more about hands-off NET income

If you like the sound of 8-10% NET yields, contracted and fixed for 10 years – and all without having to lift a finger, take a look at our “Welcome to effortless” video today.

Purpose built student accommodation investing


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