Investing in property in the student market

by : Sergei Tereschenko

Julien Lu the UK Regional Director of IMOINVEST says, 'Investors will benefit from few constraints, plenty of flexibility and considerable advantages. Low cost and easy finance coupled with long term guaranteed rental income make this an outstanding long term investment plan. In effect you are letting demand alone pay your mortgage whilst enjoying capital growth.'

So why is France and in particular Paris benefiting from increased student numbers which offers good long term investments for those looking to step on to the property market?

Julien says, 'Students who study abroad come away with a sense of having broadened their horizons, achieved a greater independence, a more open mind and an adaptability that will help them successfully enter the job market. French higher education has a long tradition of openness and accessibility and the education provided here ranks among the best in the world. Today France is the world's fourth largest economy and second largest exporter of services. At present there are over 190,000 international students who have chosen France for all or part of their higher education. These international students enrich the French system with their culture, experience, energy and accomplishments. This in turn benefits the French property market and subsequently those that invest in it.'

Student accommodation is now becoming more and more attractive to investors as a whole. This again is due to increased student population leading to increased demand for student property and a strong guaranteed rental return. Student population is a stable demand source. There will always be students requiring accommodation and government policies underpin continued student numbers growing. Demand is also less volatile than other property markets, due to the set 'academic' year which predetermines exactly when investors will be receiving an income from their investment.

In actual fact investors can take great satisfaction that their rental income is guaranteed by France itself, not bad considering Treasury bonds area at 2% but here you get 4.8% guaranteed rent and capital appreciation.