With a booming market and shortage of supply, more Canadian investors are reportedly tapping into the student buy-to-let pool in the U.K.
With three of the top 10 highest ranking universities in the world, the U.K. is now one of the most popular destinations for international students.
It is for this reason, and the potential profits that can be earned, why more Canadian landlords are choosing to redirect their investments to the U.K.
According to Vita Student, a provider of private accommodation in the U.K., the increasing demand to study there has led to a drastic shortage of suitable housing for students.
Vita Student currently has eight developments across the U.K., and recently launched a new project in Sheffield which will serve over 63,000 students. They say that an investor can earn a 35 per cent net return over five years through its offering of bespoke studio apartments which have been specifically designed for students, alongside a large communal ‘hub’ which includes relaxation, study and social areas.
Ayaz Davidson, a Toronto-based investment banker, is one of the many Canadians that has bought into the student market in recent months.
“My wife has always wanted to invest in the UK as she went to university at the London School of Economics (LSE) and I think that the economy is strong but unfortunately we just hadn’t found the right opportunity,” he says. “Standard buy-to-let properties take a lot of time and money to maintain, especially from abroad, so we were looking for something a bit different
The proposition of high-quality student accommodation, assured high yields and a relatively low entry point meant that Vita Student at Portland House in Exeter was very appealing.”
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