Estate Living November 2016 Digital Issue | Page 49

Investing in student accommodation is also proving to
be feasible globally. Research has seen a rise in student
entrance internationally, which puts pressure on current
campus accommodation and infrastructure worldwide.
In Canada, the majority of investors are buying family
homes close to university grounds and adapting them
into youth hostels. Property investors are also buying
land close to universities and developing small and largescale condo developments suitable for student living.
In the UK, student housing construction projects have
increased by 26%, with 4 500 new construction permits
issued in 2015. According to Axiometrics Inc., 2016
is proving to be a lucrative year for student housing
investors in the US, where student enrolment is projected
to reach 200 000. With only 45 000 beds earmarked for
development, property investors are standing in line to
take advantage of the development opportunities in this
sector.
When reviewing the value of your investment, it is a
good idea to think ahead. Just because property may
be well marketed, located near a university and sold as
student accommodation, this does not mean that it’s
a good investment. There is still a need to ensure that
there is resale value and a good cash flow opportunity.
Calculations of the financial benefits of a property
investment rental must take yields into consideration.
The yield is worked out like this: total annual rental
received, less the total e