An asset group that has received a considerable amount of overseas attention is property. UK real estate has always been regarded as a secure investment type and there has been heavy spending in this sector over the last few years.
A property type which has particularly caught buyers’ eye is student buy-to-let with global property consultancy Knight Frank stating that “student property returns are higher than any other property type” in its 2014 market report. Due to a considerable increase in the number of students in the UK there is now a drastic shortage of suitable accommodation, with universities unable to keep up with the demand and the development of student properties falling to the responsibility of the private sector.
This trend has been recognised by both UK and international investment professionals, resulting in student property emerging as the UK’s strongest asset class. Within this category, purpose-built accommodation developments are thought to provide the highest returns.
Vita Student is a provider of private accommodation in the UK and its products represent the very finest student residences on the market. It offers bespoke studio apartments which have been specifically designed for students, alongside a large communal ‘hub’ which includes relaxation, study and social areas as well as a gym.
It currently has eight developments across the UK in strong university cities such as Manchester, Liverpool and Exeter. Their latest development has just been launched in the popular university city of Sheffield, serving the needs of 63,000 students and offering investors 35% net assured return over five years. More than 1,000 Vita Student apartments have now been sold by Vita Student’s exclusive sales agent Select Property to investors eager to benefit from this flourishing sector. Jimmy Chan from Singapore is one such buyer.
Believing in the British higher education system
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 is an investment analyst for a major international bank so has a good understanding of the rewards that can be gained from making well-researched financial decisions. Jimmy has bought several buy-to-let properties in Singapore and has been looking to diversify his portfolio for some time.
He recently bought a £58,032 studio apartment at Vita Student’s Crosshall development in Liverpool UK, based on the potential rental returns it can generate and the appeal of UK universities to aspiring students in Asia.
The apartment is on the fourth floor of the Crosshall building and has been bought off-plan, with the development due to be completed ready for the 2015/2016 academic year. It is adjacent to two other Vita Student projects – The Chapel and Tinlings.
Jimmy explains: “I always make sure I monitor the international property market for trends that I can benefit from and the student property sector in the UK caught my eye a while ago.
“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.
“The Liverpool universities have a great international reputation and the Vita Student development is in a perfect position to cater for the students flocking to the city. It’s easy to see that the studios will particularly appeal to overseas students as they have all the popular modern conveniences and their families will be happy as the developments are so secure.
“So far my experience with Vita’s sales partner Select Property 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!”
Visit www.selectproperty.com to find out more about Vita Student and its latest project in the city of Sheffield – from its exclusive sales partner, Select Property.
