Priced from £60,000, we will soon be offering Manchester student investments near Princess Street.
Aimed at clients who have expressed an interest in hands off student investments in Manchester – often dubbed the student capital of Europe – this is your chance to buy a unit so close to a prime location.
We have been assessing this particular building for the last 15 months. Since the property is off market, we have been able to undertake due diligence on all matters.
What strikes us most is the beauty of the building and the scope for making use of the internal area which had been left empty and derelict for the last 10 years or so.
Furthermore, the location of the building is superb with it being a few minutes walk from renowned University of Manchester.
Coming soon – Manchester student investments from £60,000
We anticipate over 110 rooms being made available and we are in discussions to put more of an emphasis on making sure that these units are future proof. What we mean by that is whilst we would like to make these Manchester student investments accessible to investors with lower capital levels, we want to make sure that if for any reason the client wants to exit the investment, they will have a wider range of exit strategies.
What we have seen with our other endeavours and with the market in general is the limited scope for exit strategies.
Whilst it initially started from a good footing and there was a genuine niche that was being addressed, the selling of student rooms to individual clients is yet to bear a suitable exit strategy. The closest we have seen to an acceptable strategy is a guaranteed buy-back policy after 2 or 3 years.
However, as we have seen with two different developers in the last 6 months, guarantees from student developers are not as strong as they first seem. We explore this theme in detail below.
Manchester student investments – is it for you?
This student investment is suitable for clients that fit the following profile:
- Looking for a hands off investment.
- Will be happy to buy an even number of rooms e.g. 2,4,6 and so on. We will explain this below.
- Have capital of £120,000 to invest.
What might strike you above is the stipulation that clients, should they express interest, would need to buy a minimum of two student rooms to be accepted onto the investment scheme.
The reason for this follows on from what was stated earlier: We need to open up the exit strategies for clients. The rooms will be adequately sized to accommodate:
- an en-suite facility;
- a junior double bed;
- a wardrobe, desk and chair
That is to say, the room will measure approximately 15 sq. m. If the client buys two student rooms, this totals a 30 sq. m. which is the minimum size that any bank in the UK will lend against.
In effect, the client will buy two rooms, back to back and will have a fully defined exit strategy should they ever wish to sell: To the investor market and residential market – both of whom will be able to secure bank financing against the property.
This single biggest concern for student room buyers across the UK is what they will do when it comes to selling the units. Our initiative in this new Manchester student investments takes away this concern as two rooms will be purchased on one title.
Unfortunately, this minimum requirement will mean that a number of clients will not be able to invest due to the funding threshold, but we would rather have a solid and transparent exit solution for clients than have the uncomfortable scenario of being unable to offer any exit strategies.
Outside of London, Manchester student investments come a close second
We accept that these units are priced a little on the high end and it’s true that investors in the UK and abroad can pick up two bed student houses in reasonable parts of Manchester for £100,000 (and around £80,000+ when you’re talking about the Salford area). So asking for £120,000 for two rooms might not seem a great deal.
However, we are talking prime real estate here (mind the American terminology), which means these central Manchester student investments cannot be compared to the £100,000 grotty, run down terrace in Rusholme and Fallowfield.
These Manchester student investments are less than 40 seconds from campus
And that’s the key with these units. The university is literally on the doorstep to the university. We’ve timed it and it takes 36 seconds from the front door to actually being on campus. Once we have more pictures available, we’ll post them online.