A new student property investment scheme in Southampton is being launched by luxury city-centre developer Vita Ventures which gives investors an easy route into this profitable asset class.
The company has started work on a £21 million Vita Student accommodation scheme in Southampton that comprises of 211 studio apartments which will be sold to investors from 29th November with a low-entry point of just £67,800.
Investors are given an assured 7% rental yield for the first five years of the development being opened and the scheme is fully-managed by Vita Student which sources the tenants and deals with any enquiries during their residency.
The scheme has a four-step payment plan where investors put down £5,000 to secure the unit of their choice, 25% of the total cost on exchange, a further 25% down after six months and the balance on completion. As added protection for investors all the money is paid into a secure escrow account.
Investment opportunities in the student property market have been increasingly sought after in recent years and Knight Frank’s 2014 report on the sector shows that total returns from student accommodation have outperformed all other property asset classes since 2011. The report also predicts this trend will continue well into next year thanks to a maturing market and increasing student demand.
CEO of Vita Ventures, Trevor Moore, commented: “The recent Knight Frank report demonstrates that the student property sector is performing exceptionally well and is expected to continue doing so.
“Students are increasingly looking for luxury accommodation like ours and this demand means that our developments are very likely to be fully occupied from the start, safeguarding the future of our clients’ investments.”
This is Vita Ventures’ seventh student property scheme in the UK, following successful projects in Liverpool, Manchester, Bristol and Exeter where 95% of the studios are now sold out. The company’s strategy for targeting sites in Russell Group university cities supports the government’s commitment to attract more overseas students to the UK.
Southampton was chosen for Vita Student’s next development due to a severe shortage of purpose-built student property in the city centre which has been caused by an expanding student population and an international student boom.
Vita Student at Richmond House is one of the only purpose-built student accommodation developments in Southampton and is located in the city centre. Carillion has been appointed as the main contractor to the project, with it due to be delivered in time for the 2014/15 academic year.