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Investors dig city student flats



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Published Date: 24 June 2008
EDINBURGH has been named as the best location in the UK to invest in student accommodation.
A report from global property consultancy Knight Frank ranked the Capital above major students cities such as London, Newcastle, Birmingham and Manchester.

Student accommodation is predicted to outperform most other property sub-sectors over the next three years, with estimated annual total returns expected to be close to 12 per cent. This is the result of a predicted increase in total student numbers and rental levels in private halls. The student population set to rise by an estimated 2.9 per cent per annum, with rents rising 4.5 per.

Drew Oswald, managing partner, Knight Frank Scotland, said: "As one of the UK's biggest university cities, it's no surprise that Edinburgh scored top marks in our review."





The full article contains 138 words and appears in Edinburgh Evening News newspaper.
Page 1 of 1

  • Last Updated: 24 June 2008 11:08 AM
  • Source: Edinburgh Evening News
  • Location: Edinburgh
  • Related Topics: Mortgage and property news
 
1

ccc,

24/06/2008 12:40:00
"estimated annual total returns expected to be close to 12 per cent."

You are having a laugh!!

Do these people even know what a 'return' is based on ?!!

Maybe if you buy somewhere now with a 50% deposit it is a possibility. But then if you are sitting on that much cash I can think of no worse place just now to invest your cash. Maybe if you invest in Edinburgh property your loss will be less than if invested in Manchhester property. That is not a great reason to invest your hard earned cash....


The days of people investing in property to make a 'quick buck' are gone for at least 5 years. How long will it take the Evening News to grasp this simple fact..
2

The Landlord,

Edinburgh 24/06/2008 13:32:00
No 1 - I agree with your 12 % comment that is unrealistic, however, you are wrong about the market!

Trust me I am armed with the facts and figures and Edinburgh is still a good place to invest and has always historically avoided any property rprice decreases!

My facts and figures are really up to date and they are not as good as last year but they are by no means bad either - sorry!
3

ccc,

24/06/2008 14:25:21
#2. Please don't get me started on property price decreases !!

Have a look at the ESPC. Have a look at the sheer number of flats up for sale. (I assume you are involved in lettign flats ?). Prices for 1 bed flats in Gorgie have ALREADY fallen by about 5-10 %. Well that is if you are wanting to sell. I imagine most who have their flat on the market fall into that category....

Anyone buying a flat today in Edinburgh as an 'investment' is mad. Simply wait a few years and get it for cheaper. Whilst at the same time avoid having to subsidise your tenants.

If you are looking at LONG term then yes Edinburgh I imagine will be a decent place to invest in. But by long term you should be talking 10+ years at the very least.

Most of your new age 'landlords' are nothing of the such. They are simply speculators. Nothing more, nothing less. They are simply after huge capital gains for sitting on a flat for a couple of years. They are goosed if they started this in the last 2 or 3 years. They are quids in if they got in and out at the right time. I doubt many had the knowledge to do this however.

Long term 'landlords' however will be fine I am sure. They will know the score and rely on INCOME rather than capital growth. Because that is what a landlord looks out for first and foremost afterall.

How many Buy to Letters do you REALLY think are planning to deal with tenants, repairs etc.. for the next 25 years whilst working full time ?

Very, very few. Quite simply it is a 'get rich quick scheme' that has now turned sour.

I hope for your sake you are a 'real' landlord and not one of these fresh faced walking bankruptees !!
4

easy money,

15/07/2008 18:48:09
ccc - i cant believe im about to agree with you but yes, if you're in property for the long haul in this special city you'll do well - (however, dont expect bargains across the board in the meantime - there may be afew pickings in the Georgie / Leith ghetto's but dont get too excited)...
5

Marcoloco,

17/07/2008 13:38:21
CCC - You are not strickly correct.

Current prices only affect those investors wanting to get into the business today. On that note i would urge potential investors to negotiate hard on prices.

As for yields - the student market still provides a bumper return on investment - and the rents keep on rising. Music. Ears.

Those who got into it in the last 2/3 years are goosed? Strange - i picked up another 3 properties in 2005 - when most things went fixed price for about 3 months - I've just re-mortgage the 3 properties for a handsome return.

Granted the yeilds on the new mortgae rates that i've agreed have dropped but the profit is already banked. :-)

On the whole whilst rates go up and rents go up there's no actual loss to an ivestor who is interested in both capital apprechiation and yield returns.

One thing Edinburgh has over most places is a positive supply / demand problem which suits us landlords down to the ground.

 

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