Why Property Investors Love Universities and Good Schools ?

This article describes why property investors love investing in university cities and areas with good schools.
Property investors who are looking to make money from property love investing in areas that have universities and good quality schools. The main reason for this is because properties in these areas can yield excellent profits.

Let's start by discussing why investors often seek to invest in areas with good quality schools.

If you're a parent you will obviously want to make sure that your children go to the best school possible so they get a good education, and this often involves living within in a specific radius of the school you wish your children to attend. Therefore. any house within the area of a top quality school will always be strongly in demand and will often cost more than similar houses outside the catchment area.

So although as a property investor, you will often have to pay a premium price for one of these properties you know that when you come to sell, there will be no shortage of demand for your property, so your house will retain it's value well even in a slow property market. Plus your house will always be valued at a slight premium as long as the school is performing well. Similarly if you plan on renting out your house, you will never be short of tenants because parents will be fighting amongst themselves to rent your property just so they can live within the area of a top school so their children qualify for admission.

Areas close to universities are also very profitable places to invest for similar reasons. If you're looking to invest in a student property, then you can often achieve strong capital growth because there is never a shortage of investors looking to buy and rent to students, so you should have no difficulties selling your property when the time comes.

Also if you are looking to rent the property out and earn an income from it, you will never be short of tenants because there is a new batch of students looking for somewhere to stay for the coming year, every single year. Of course if you're renting out your property to students you may have to incur extra costs for maintenance and repairs but you can still make outstanding rental yields every single year even after costs.

So as you can see, university towns or cities can be extremely profitable places to invest because there is always high demand from both investors and the students themselves, so you can obtain strong rental yields and capital growth. Similarly areas with top performing schools will always be in high demand from both property investors and parents, so investors love universities and good schools because these areas are highly profitable.

Click here to read James Woolley's review of Money For Nothing And Your Property For Free by Andy Shaw.

By James Woolley
Published: 4/16/2008
 
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