Loans and Timing Essential For Student Accommodation Property Purchases

By Ignacio A. Sapalo Jr.
Every parent has the problem of their kids going off to college or university to be on their own. This is especially true if the school that they go to is too far of a commute. This is where parents often mull a purchase of student accommodation. These accommodations are usually small apartments with common areas for those staying

there to share. Thus, these student living areas are often looked at as a good alternative to renting and paying for board and lodging. This is because after their child finishes school the parents may actually be able to earn from the student accommodation by renting out the property.

However, timing is very important and preparations are very important. For parents
who plan to have their child to live in the student accommodation then the only problem is getting the home loan approved in the first place. Banks and lenders often shy away from accepting these types of loans because it is difficult to get a buyer in case of default and inability to pay the value of the loan. On the other hand, for those who are not parents but investors who would like to rent out the property immediately, then the correct timing and strategy should be made. Research on when school starts and advertising to possible tenants should be made. In this way the investor can immediately get a tenant for his student accommodation and any loan will become self liquidating. Of course if there is no school then the possibility of anyone wanting to rent the property in question becomes close to nil. This means that getting your return of investment and making the repayments becomes all the more difficult as no rental payments are forthcoming.

Thus it is essential to correctly time the purchase of your student accommodation for the best results. This will ensure easier loan approval and faster return of investment if you are in it for investment purposes. On the other hand for parents who would like their children to live in a comfortable environment, but cannot afford to pay for a unit in cash, the priority would then be to find a bank who would not mind approving a loan for the purchase of student quarters.