The student property market is booming in Aberdeen due to the city boosting two universities; Robert Gordon University and Aberdeen University. Add to that Aberdeen College and it is easy to see why the market is so busy.
Both Universities are well known in the UK and attract a large number of students. During the period 2012-2013; both universities attracted 16,000 students each, giving a student body of 32,000 in from universities alone.
Robert Gordon University has recently invested millions in a new campus in Garthdee, moving all previous city centre buildings to the same campus, while Aberdeen University remains in the Old Aberdeen area. Of course properties around the city centre will also prove popular as it provides easy commutes to both universities. Therefore buying property in and around these areas will provide for easy lettings.
For the student market, one bed and HMO properties are in high demand. The demand of HMO properties is particularly high, to the point that there are never enough properties to house the number of applicants. A one bed apartment may set you back around £100,000, rental value will come in around £575pcm, giving a yield of 6.9% per annum. Whereas a 3 bed HMO property may cost in between £175,000-£200,000 and its rental value will come in around £1,200pcm; giving a yield of 7.2% per annum. In cases of HMO properties costs such as council tax, TV licences and utilities are covered by landlords, meaning that profits will be slightly reduced. However if all tenants are students, it will be possible to get an exemption from council tax.
Unlike the rest of the UK student market, the Aberdeen market offers only 6 or 12 months leases. 10 months lease do not exist. This means that your property will not remain empty throughout the summer waiting for the influx of students in September. Renting out your property can also be a quick process, taking only 3-4 days. However, many students want to stay in the same property for the entire of their university degrees, meaning renewals are common.
If you are interested in entering the student market in Aberdeen, please contact our office either by phoning 01224 636500 or e-mail email@example.com. We can provide a service to find the right property for you.