The procedure of purchasing student apartments in cities like Liverpool or Manchester is performed through the developer. The most effective option is to secure the purchase of an object at the off-plan phase of development. It allows you to buy apartments at really low prices that are protected from growing beyond the construction period.
For the implementation of the transaction the investor initially makes a deposit of £5,000, and then after 21 days, completes a payment equal to 50% of the total cost. The remaining 50% of the price of the object must be paid at the time of completion.
Buying student property at off-plan poses minimal risks. Investor is legally immune from freezing of construction and, in the case of overruns of building (6 months and longer), the investor will be fully refunded the deposit made. Fully trained counseling is the most important thing when choosing any product: when making a responsible step, teaming up with a decent real estate agency and professional conveyance solicitors is essential.
Managing the property
After putting the construction project into operation, the investor signs a contract with a company that will manage the property in the future. The competence of these companies includes: the selection of reliable tenants, the systematic sending of income investor control over the state of the premises, payment of utility bills, etc. Management companies usually cooperate with educational institutions, to ensure maximum effectiveness of education and, of course, driving significant revenue by providing quality services.
The dividend amounts
On average, over the first three years, the investor receives 6% – 9% of rent net profit from the management companies. Furthermore, this figure will be revised and gradually increased. The growth of profitability will be affected by the growth of rental rates, which is characteristic for a specific region. The management company is obliged to transfer net profit to the owner of the object quarterly.
The conceptual differences
Student apartments in Liverpool, Manchester and other university towns in England are considered to be residential projects, where officially registered students and personnel can live. These apartments constitute the most affordable category property and represent studio apartments with the standard layout. This type of premises can accommodate a wide range of tenants: students, graduates, employees of universities, young families, etc. The most frequent types that fall in this category are: studio apartments, apartments with two bedrooms, apartments with improved layout, etc. When investing in a real estate, the investor is required to design the interior, since the objects are available without furniture, while their costs vary within £2,000 – £4,000.