Buy-to-let still interesting students
More than 60,000 students are keen to jump on the buy-to-let bandwagon in order to help fund their studies, a new report has revealed.
The study, commissioned by Abbey Mortgages, found that 88,000 students already reside in properties they or their parents have bought specifically for their spell at college.
A further 66,000 students are keen to follow suit, while around 44,000 parents have identified a buy-to-let investment in a university town as a good way of helping to prevent their offspring accumulating student debt.
Abbey's head of mortgages Nici Audlham Gardiner said many buy-to-let investors see the student sector as a good source of income, but added that aspiring landlords should give plenty of thought to the costs involved.
She explained: "People considering it need to make sure that they can afford the mortgage payments plus any maintenance costs, service charges and down-time between tenancies that they will also need to cover."
Personal finance website Moneyfacts.co.uk recently advised parents that buying a house for their children to live in while studying could prove a good investment, as the mortgage repayments can be met by renting out rooms to other students, meaning any capital appreciation is profit.
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