During the past decade there has been a considerable rise in the number of students in the UK, particularly international students. This has resulted in a shortage of suitable accommodation since universities have been unable to keep up with the demand. As a consequence the development of new student accommodation has fallen to the responsibility of the private sector which in turn has caught the attention of investors on a global scale.
The strengthening market and high rental yields has been recognised by investment professionals, resulting in student property emerging as the best performing asset class in the UK property sector in 2012.
Vita Student is becoming known as one of the most sought after investment opportunities and it currently has six developments in the UK, including projects in Liverpool, Manchester, Bristol and Exeter. The strategy of the business is to target the top university cities in the UK where there is a high demand for student beds and a large proportion of international students looking for premium accommodation.
Investors can purchase a Vita Student studio for as little as £59,950 and will receive a minimum 7% rental yield for a set number of years. This offering has proved to be successful as the company has sold 95% of its portfolio to investors across the world.
With confidence in the sector at an all-time high, there has never been a better time to invest in premium student property.
International investor diversifies buy-to-let portfolio with Vita Student
Jimmy Chan lives in Singapore and believes that the strength of the UK higher education system provides the ideal foundation for a profitable property investment.He has bought several buy-to-let properties in Singapore and has been looking to diversify his portfolio for some time.
He recently decided to buy a studio apartment at Vita Student’s Crosshall development in Liverpool, UK, due to the potential rental returns it can generate and the appeal of UK universities to aspiring students in Asia.
Jimmy explains: “Academic institutions in the UK are going from strength-to-strength and the quality of the education is renowned across the world. I’ve seen first-hand that students in Asia are doing everything they can to attend university there – a movement that is sure to generate a huge demand for accommodation in all the major cities.
“This made me look more closely at the student property market and I found that the potential rental returns are much higher than other property assets which obviously made me even more interested in making an investment.
“I was first introduced to Vita Student through Savills estate agents so I knew straightaway that it must be a credible company. The sheer quality of the Crosshall development was enough to make me want to invest but I was also offered an assured 9% rental yield for the first two years of it being open which gives me added confidence that the project will be a success.
“So far my experience with Vita Student has been fantastic. The sales process was smooth and I have received regular update reports that show me how the build is progressing – very helpful seen as I haven’t visited the UK to see the project at all!”