Numerous people with Slavic roots are interested in some profitable investment ideas that are preferable in terms of both risk and capital investments. Huge business premises are unavailable for common people due to their unbelievably high cost and options of purchasing real estate for dwelling seem to be the most attractive. The picture of leasing out a dwelling for people seems quite bright, although the level of profit equals about 3% with the risk of potential problems from the side of dwellers.
The recent trend of investment into dwelling for the students has become extremely appealing on the real estate market. Judging from experience of numerous investors it is a fine combination of investment fund and potential profit for common people. Unfortunately, not many Slavic people take this option into consideration, although in Europe it has already become a prosperous business field.
Why Is It Profitable
Starting with 2012 the gross year amount of money spent on student real estate has leaped over 6 billion USD. The following factors prove that the potential of such business is a worthy affair.
- The growing number of students. The world is growing smaller and students from all over the world study in various universities. In some popular universities of Europe you can meet students from all continents of the world so there is no need to worry about customers.
- The potential income is greater. The profit level from dorm objects is 4-5% against 2-35% of a standard dwelling. Everything depends on the university for which it was built. Basically the location decides everything.
- A relatively low entry threshold. Thanks to possibility to cooperate people can unite in order to purchase a real estate of a large size and work for a mutual profit, while a single apartment can cost up to €90 000.
- No need to control the real estate. The investors are hiring the personnel that is taking care of the premise and maintains the order so there will be no need for personal involvement.
Ideas for purchasing
Europe student real estate seems to be more attractive and affordable than in the USA due to lower tax rate. The universities of Great Britain, France and Germany tend to be the most appealing ones as they have the most developed student structure. It is also a good idea to monitor the university news regarding the new campuses opening or faculty development as it might be an awesome chance for finding a winning niche.
Check out the web for potential variants and get as many information as possible in order to find the most suitable investment opportunity for the greatest profit.
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