Diversify your portfolio, Invest in student housing.

By: Gloria Yeung

Diversify your portfolio, Invest in student housing.

Tags: #StudentHousing

Diversify your portfolio, Invest in student housing.

Today’s students, particularly international and affluent students, are willing to pay for amenity-rich housing. Below are three reasons why some investors choose to invest in student housing projects over typical condo projects.

1. High Demand
 
There are approximately 1.5 million full-time students currently enrolled in Canadian universities and colleges. This has generated a huge demand for rental housing that, particularly in large urban centres, the demand is often times not met.
2. Student Housing Is a Recession-Proof Investment

Unlike other investment properties, student housing is resistant to economic lows. During economic downturns many people return to school looking to acquire new skills. This generates higher demand for rentals and therefore attract investors to buy for a good return.
3. Rent Is Stable

The high demand for student rentals tends to keep rental prices strong even when other types of rentals fall. There is demand year over year as new students enroll. It is important to note signing a 1 year lease instead of 9 month or a school year lease to cover for the summer time when most students are away from campus.

Below is one such opportunity!  This is SAGE Living in Kingston, Ontario, near Queens University.

A TURN-KEY INVESTMENT

Begin investing in your future. Kingston has one of the lowest vacancy rates in Ontario as the growth of student housing has not kept pace with the growth of Queen's University. Sage Kingston will have a total 325 suites, providing a premium product to an in-demand under supplied market. Suites starting from the mid $200s.

One Day Event February 9th - By Appointment Only
First Round Pricing And Incentives - DON'T MISS IT!


2 Year Lease Guarantee*
2 Year Free Property Management*
Fully Furnished with a Furniture Package*
I Would Like To Attend The One Day Sales Event
I Would Like To Receive Brochure and Floor Plans
Reasons to Buy: 

1. Rental Demand: Queens University has a total student and faculty population of 32,657 (2015*) however only have on-campus housing for 4,500 students. This creates a large demand for off campus student housing. 95% of all incoming students arrive from outside of Kingston, which only adds to the already high rental demand. 
  • Kingston has a vacancy rate of just 0.7% (a "healthy" vacancy rate is considered to be 3%).
  • Vacancy for new units (built after 2005) is only 0.3%.
  • Kingston has the third highest rental rates in Ontario (after only Toronto and Ottawa).
  • Students at Queen's pay $750-$800/mth for a bedroom in a 5-7 bedroom house. 40% more than similar accommodation in Waterloo or Hamilton.
2. Your Potential Tenant: The average entering grade of an incoming undergraduate student is 88.4%. The University possesses a world class Medical School, Law School and Business School featuring both MBA and EMBA programs. Bloomberg Business Week ranks Queen’s MBA #1 in the World for teamwork, Queens University is also Ranked 4th in the Medical Doctoral category for overall academic excellence. Queens also has the #1 graduation rate in Canada with 87.8% graduating in 2015.
3. Rental Guarantee: All units are Fully Furnished and will come with a 2 Year Rental Guarantee and Free Property Management. This will truly be a turn-key investment where you do not have to stress finding tenants or collecting rental income.
4. Property Management:
  • Sage Living will take care of finding a tenant, securing a lease agreement, rent collection, and maintenance service requests from your tenant. 
  • Sage Living specializes in student housing with a portfolio of over 2000 beds under management.
  • Sage Living manages 11 different condo buildings. Conducting property management specifically for individual condo owners. 
  • For the 4th year in a row Sage Living has maintained 0% vacancy rate across its entire portfolio.
  • Sage Living has consistently achieved the lease guarantee rates in years 1 and 2. In some cases, it achieves rates 10-20% higher than guaranteed rate.
5. Location: At the corner of Princess Street & Nelson Street, which is about 15 minutes walk from Queens University. The site possesses an 82 Walk Score meaning that most amenities are walking distance which include grocery stores, restaurants, coffee shops, public parks, Kingston General Hospital and more. 
 
6. Building Features: The development will be the pinnacle for off campus student housing in Kingston. It will be comprised of ground floor retail space having many important amenities just downstairs for students to access. Amenities in the building will include a study room, lounge, games room, fitness centre, 24-hour surveillance cameras, bike storage, and surface & underground parking.
I look forward to helping you secure a suite at Sage Kingston!
Related Articles