Why Invest In Student Housing?
Have you ever been to a college or university town? From late August till early May, they’re teeming with 17- to 25-year-olds who call these places their home away from home during the school year. Many of these young students either can’t or don’t want to live on campus in residence. Upper-year students are often looking for student housing near campus that’s clean and safe. There’s always a demand for student rentals.
If you’re looking for an investment property, student rentals have low vacancy rates. There’s a new demand, it seems, for more upscale student housing. Many young tenants place a high value on comfort and security, so they are looking at condo buildings with rentals and purpose-built stacked townhouses.
While some view renting to students as a risk, when it comes to a luxury student apartments in Toronto, the rent is often paid by parents who are investing in their child’s future.
More stable than stocks
When you want to invest your money into something, real estate is a good place to start. While the stock market can be volatile, real estate is often steady, making it a secure place to put your money. Student housing will rarely have vacancies, as there are always students who need housing. The key is to buy a property near the school. These designated areas are often full of off-campus housing options, and more are being built as demand grows and older properties are being redeveloped.
Owning student housing has become so lucrative, some are now owned by pension funds.
While the luxury market often appeals to all types of students, many of these student rentals are sought out by international students or their families. International students pay a premium to receive a Canadian education, so it’s not often that they want to skimp on the accommodations. They want the best and are willing to pay for it.
Real estate investment trusts (REITs)
Sometimes student housing is owned and operated by private REITs. Since student rentals are a niche market, there are specialized REITs for this. The student rental market can be a different beast from traditional real estate and rentals, so it’s not surprising that it’s a specialized investment.
When thinking about making a big real estate investment, start your search near major post-secondary institutions!
For students looking for student housing, check out Gottarent.com to find your off-campus home. For property owners investing in student housing, list your available units to get matched up with eager tenants.