From Student Renter to Student Landlord?
Ah, University life – freedom, new friends, hard work…. and leaving with a mountain of debt. 😰
Well picture this, instead of spending thousands of pounds renting a room in a student house or halls of residence, what if there was a way to buy a house, rent the spare rooms to fellow students to cover your living costs, and end up with an investment property by the time you get your degree?
Well the idea might not be as far fetched as it sounds. Some lenders will grant a mortgage for a student to buy a property near their university, so long as they have the financial support of a parent. You might not even need a deposit, if your parent is willing to let the mortgage lender take a charge on their own property.
A recent study by Zoopla found that the average cost of student a student rental property where we’re based in Brighton & Hove was £1,369 per calendar month – that’s nearly £50,000 over 3 years! So being able to buy could save thousands of pounds, as well as give you security of tenure and allow you to be in control of maintenance and improvements, which could make for higher quality accommodation.
As with any mortgage, this arrangement is not without risks, terms and conditions, so you should always take independent financial and legal advice prior to entering into any agreement.
Sam Murphy – 24th September 2021