Going to university is a big step and the hardest part can be finding the right accommodation. It was very popular at one time for parents to buy property for their children to use whilst studying away from home. Over time, this became less common as more student accommodation blocks were built and heavy-duty buy-to-let regulations and reductions in tax breaks came into play. What’s interesting is that we are now seeing a resurgence, with 66% of parents thinking of purchasing a buy-to-let property to help their children financially.*
Is it reliable to purchase a buy-to-let right now?
Yes! Whilst there are changes to the stamp duty tax, it’s an effective way of pulling through some extra income throughout the year.
Rent collection is an example of the short-term benefit, but the long-term benefit is the potential to gain further profit from your investment over time.
However, not all households have the disposable income to acquire a new property, which is why 53% of the 2,000 homeowners who took place in the survey said they’d consider downsizing to help their children at university.
What sort of property should I choose?
It’s entirely dependent on your financial situation, as well as what you think will pay off in the long run.
Location is also paramount. Choosing somewhere that’s near the campus as well as local amenities such as shops and bars will mean that your child’s quality of life won’t suffer.
When it comes to buy-to-let properties, there are some rules and restrictions to keep a close eye on.
If you’re reading this and thinking of going down this route, please get in contact with our team so we can make sure you’re fully informed before making any decisions.
*Letting Agent Today