Invest in student rooms

Investing in student rooms is a good idea these days. After all, student rooms are as popular as ever. Especially in countries like Belgium and the Netherlands, where a large number of young people nowadays choose to study. People like to live in the big city, close to their fellow students. When there are specific student rooms available, this is even better.

Why invest in student rooms?

Investing in student accommodation is basically done for various reasons. Often, it comes down to the fact that this is done from a financial point of view. You want to make money in some way by investing money. But why specifically student rooms? What makes investing in student rooms different from investing in homes or office buildings? Let's look at a number of points:

Suitable for smaller budgets: Are you a beginning investor with a relatively limited budget? Then student rooms offer a very good solution. Create student rooms investing in real estate with a limited budget very well possible. Often, student rooms are much cheaper than flats or even entire houses. In general, a student is easily satisfied with a small room. As long as he or she has accommodation close to the campus. This also means that student rooms are a lot cheaper. As a real estate investor, you do not have to dig too deep into your pockets. With relatively little starting capital, it is already possible to make your first real estate investment.
Stable demand: It is also good to know that there is a stable demand for student rooms. In fact, there are never enough student rooms. Many a student is happy with the first option he or she is offered. So you can be pretty sure that it is a safe investment. Even after a while, the number of students remains fairly stable and will probably even increase. As an investor in real estate, you will profit considerably from this in the long run.
High efficiency: A high return is what every real estate investor is looking for. It is therefore very convenient that student rooms are known for their high return. You quickly come to an efficiency of 4 to 5%. And we are only talking about the annual rental income compared to your initial investment. On top of that, of course, the student room itself will probably become more valuable in the current housing market. So in that respect, too, you will have a lot of capital growth left over from such an investment.
Limited risk: In most cases, a real estate investor is looking for limited risk. When you like the somewhat higher risks, you are more likely to invest in shares or cryptocurrencies. As briefly mentioned before, an investment in a student room does quite well in terms of risk. The chances are very good that the room will only become more valuable. Studying is something young people will always do. Add to that the expected increase in value and you soon arrive at a limited risk.

What to look out for when investing in student accommodation?

However, it is important to note that you should not blindly invest in just any student room. It is a fact that options vary in quality. You can find the best investment options by taking a number of factors into account. Consider, for example:

Correct location: Start by finding the right locations. For example, you will soon end up in larger cities. Larger cities have many universities and colleges. Logically, this attracts many students to these cities. Therefore, try to take into account the universities and colleges that look the best. And which have relatively modern ideas. The chances are then greatest that students will continue to come to this city in the coming years and decades.
State student room(s): Another important point of attention is the condition of the student room. Especially the older student rooms are not always in a good condition. The chance of defects will then increase, which will also increase the chance of costs for you personally. This is for instance why a investment in new buildings is often so popular. Of course, it does not always have to be new construction, as long as you find out whether the room is indeed in a good condition.
Investment target: Before you make your investment, decide what its purpose will be. Or what plan you have for it. This provides clarity. For example, there are numerous investors who choose to buy up a number of student rooms, renovate them and then sell them on. Or they specifically choose to buy a property, rent it out for 5 years and then do something else with the money. What is your goal and/or plan when making an investment? Is it short term or long term? Your final choice for a specific student room depends on this.
Right provider: Finally, you have to find the student rooms on offer. Preferably with a provider you can trust. A provider with a good reputation. Fortunately, such providers exist in large numbers. For example, there are Immoweb, De Bloois Real Estate and Sons Real Estate known as important providers. They have a good range of products to choose from, and you can find them to suit different budgets.

Specific tips when investing in student rooms

Very specific information comes in handy when investing in student rooms. It ensures that you know exactly what you are doing. For example, keep in mind the following tips:

The main options are the two big student cities: Ghent and Leuven. Both have a shortage of rooms.
There are also a number of new, emerging student cities; Kortrijk (a shortage of student rooms), Bruges (saturated), Antwerp and Hasselt.
Pay close attention to the policies of each individual city. These differ from city to city. Do they still want students in the city centre, for example? In Ghent, this is no longer the case.
Find out where new campuses will be built or old campuses will disappear.
Be careful with annual rental periods. At the beginning of the academic year there is a lot of demand, then it stops.
Due to the high turnover, there is a lot of extra work (describing places, looking for tenants).
Rent arrears among students are common. Keep this in mind.