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Investment in UK student property boosted by Indian Government legislation

Investment in Student Property.

The recent legislation by the Indian government which raised the allowance for investment in real estate outside the country by up to the equivalent of 125000 US per person, per financial year, is boosting demand for student property in the UK, according to The Mistoria Group – leading student property investment specialists.

The yields in India for residential rental property has been historically low at around 1-2%, but appreciation is high, between 10-30 % per annum.  Over the last 3-4 years, property prices have corrected, but rentals have not improved.  Hence, Indian investors are more keen to look overseas.

Investing in UK student property offers investors a long-term investment option, as typical rents are significantly higher than a comparable buy-to-let property in the same city.

The average gross cash rental yields for the student property sector in the North West of England were 13% for the first three quarters of 2014, well ahead of the 6.37% forecast for average student property yields across the UK, for this year.

Mish Liyanage, Managing Director of The Mistoria Group explains: “We have experienced an increase in demand from Indian Investors over the last few months, all of whom are looking for investment in student property.

“Since 2011, investment in student property has outperformed all other traditional property assets and has been the strongest growing investment property market in the UK.

“It has also continued to be one of the most resilient investment sectors, with rental incomes and property values remaining stable, or increasing.  The attraction of the Investment in student property sector has been driven by structural undersupply and positive rental growth year on, despite the economic downturn.

“Our research shows that students will pay more in the UK for high quality, well-maintained accommodation than for the traditional run down and neglected shared houses, because there really isn’t a big price difference between poor and high quality accommodation. A HMO (House in Multiple Occupation) property can provide an 8% minimum cash yield, though we provide a typical 13% cash yield, including 5% capital appreciation.

“What’s more, the domestic student population is continuing to expand, with an extra 30,000 university places offered in 2014.  UCAS have reported they are expecting an all-time high of 500,000 applications this year.

Sandeep Singh, an Indian lawyer and a real estate investor comments: “The UK is considered a safe market without a lot of hassles for overseas landlords looking for passive income.  The UK law does not prohibit international investment from foreign nationals. To add to this, there are no legal hassles regarding title of property and the prices of real estate in Indian cities are very much comparable with prices in UK major cities.

“Since the legislative changes, the UK student market has become highly attractive for Indian investors as it offers high yields, good asset growth and hands off investment.”

Mistoria Group was formed in 2009 by entrepreneur, Mish Liyanage. Together with a group of highly qualified, successful property professionals, he ensures that each client receives a bespoke solution tailored to their specific property needs. For further information, please visit www.mistoriagroup.com or call 0161 707 6106.

 

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Student accommodation is on the map!

Salford Rental Property MapThe period after the winter break is a notoriously busy time for students.  The hours of study and revision and the tension and nerves generated by impending exams are increased by the pressure to find the best student accommodation for the next academic year.  But when it comes to finding a good house, sooner is always better.

Luckily, we’re here to take some of that stress away.

As an evolving letting agency, we’re constantly looking for ways to improve our service and the property search experience for our customers.  It’s widely acknowledged that images are processed much quicker words, and so we have added a map search facility to our website.  We hope the new visual feature will make finding your ideal Mistoria property a much easier and more efficient process.

Launched just in time for the busy post-Christmas rush, the tool should enable our student searchers to make fast decisions about which houses they want to view.  By plotting our properties on a map, the user is able to search an area and get accurate location information at the touch of a button, helping them to choose the most suitable student house according to their requirements.

So far we have added two maps; one shows our available student properties in Liverpool, the other, student accommodation in Salford and the surrounding areas.

Both maps can be found under the About Us drop down menu in the main navigation bar of our website.  We hope you find this new tool helpful but if you need more help to find a convenient room or house to rent in the Salford or the Liverpool area, contact one of our agents on 0800 500 3015 or via our website.  We’ll be happy to help you.

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PRESS RELEASE – Record number of student accommodation enquiries for 2014/15

Mistoria Estate Agents, part of the Manchester based property investment company, the Mistoria Group, has received a record number of enquiries for student accommodation ahead of the 2014/15 academic year.  Despite the new term having only just commenced, the lettings firm has reported a surge in ‘early bird’ enquiries from those wishing to position themselves favourably, in securing the best houses in the most convenient location.

In line with this, Mistoria Estate Agents are encouraging first time students to read their very own accommodation guide.  The 9 page document entitled Guide to your First Student House, was originally launched in August to enable clarity in a potentially complicated field.  Housing for first time students involves an element of responsibility, which for many can seem a daunting experience.

The updated report, offers information with regards to the requirements students should be seeking from their accommodation, such as a good location, space and value for money.  In addition, there is lucidity on more complex matters such as landlord obligations, deposits and holding fees.  A check list for both moving in and out is also provided, with further information on minimising rising energy costs.

“We are surprised by the level of interest we are currently receiving with regards to the next academic year.” said director of Mistoria Estate Agents, Mike Howard.  “Today’s student is more exacting when it comes to quality accommodation and we are well known within the student community for high standards.  In addition, we are delighted to provide first time students with our guidance report, which hopefully, will provide transparency on regulations and break down the ‘jargon’ that can cause the process to become unnecessarily worrisome.  Given the recent announcement regarding tenant fees, we’ve updated this guide to make us, our services and our pricing as clear as possible.  Trust between tenants and landlords is essential and hopefully the new scheme will reduce the issue of inconsistent pricing in the rental property sector.”