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When trends begin to rise at a rapid pace in one particular property investment area, there has to be a reason why, and for student accommodation investment, which is currently experiencing this interest, it is because the burden of mortgages and the risk of an interest rate change have both been eradicated.Graham Flaherty specialises in student accommodation investment, and he explains that the low price of attractive student housing, along with the fact that demand has risen because universities are growing at a fast rate, have both contributed to this new-found interest.In student-heavy cities like Liverpool, student lets are achieving 10% net yields, which is higher than residential property investments, he says.With residential property a low cost goes hand-in-hand with low demand, but this is not the case in student lets, he adds. People are not burdened with mortgages and the uncertainty of interest rates as units can be purchased from only 30,000 cash.And it should be noted that interest in housing tomorrows graduates is not only being generate from the UK, there is demand from across Europe too, potentially indicating that this is a low cost high demand property proposition that is unlikely to wait around.European investors may well have noticed a shift in approach to higher education within the UK, with rows over tuition fees and entry criteria proving that there is a greater business angle within this sector today, more so than ever before.Generating a higher education institution that appeals to students in the UK as well as abroad has become a priority for universities today. This has led to the banishing of traditional views around typical student accommodation, adds Flaherty.However, as with all positive news there has to be some sort of drawback, and even the most optimistic of investors should acknowledge that there are elements of uncertainty with student let investing. Above all the cost of attending university is rising, w hich has the potential to prevent a chunk of the population from attending altogether, and if student numbers diminish, so too does the demand for accommodation.However, for now it seems that demand is up, risk is low, and so too are costs, and investors both in the UK and Europe are showing interest in what could be a small window of opportunity.





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