am
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Post by am on Aug 10, 2017 15:41:12 GMT
I struggle to see how the profitability calculations work, given the rental premium compared to more standard student HMOs. For example, Swansea is 688pm vs 325pm and Cardiff is 700pm vs 375pm - That's a HUGE premium to pay for "newness", and the few other perks that can come with it (sometimes concierge, gym, etc). The only way I've been able to make the development calculations work, is when the developer sells off to other investors. And indeed, that's what seems to be happening - Sell leasehold to investors, "guaranteed income" for a few years, slap on sky high service charges. The only way I can see things changing, is if regulatory changes happen restricting standard student HMO accommodation - Still, who's going to pay a 2x premium? I'd worried about refurbishment costs down the line, and escalating service charges. More recently it was brought to my attention that some of these properties have leaseholds with ground rents doubling ever 10 years, which won't be good for income generation, and hence capital values. On the other hand, some projects offer guaranteed buybacks. But how strong are the guarantees? and will the guarantor still be in business when the offer comes due?
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agent69
Member of DD Central
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Post by agent69 on Aug 10, 2017 18:23:35 GMT
There's a building called Renslade house, which is about 10 stories tall on the edge of Exeter city center, overlooking the rive Exe. It's currently being redeveloped as a Holiday inn and student accommodation
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jonah
Member of DD Central
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Post by jonah on Aug 10, 2017 19:23:44 GMT
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kermie
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Post by kermie on Aug 10, 2017 20:10:12 GMT
Gulp! I sure hope those numbers are wrong, since it suggests we have been in a real bubble propped up almost entirely by the Chinese.
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gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
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Post by gibmike on Aug 10, 2017 21:05:41 GMT
Less UK students = more foreign students = higher fees for Universities.
Nothing wrong with this apart from training overseas talent, ignoring locally grown talent and forgetting about the next generation of wealth makers in the UK.
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jlend
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Post by jlend on Aug 15, 2017 17:20:38 GMT
Less UK students = more foreign students = higher fees for Universities. Nothing wrong with this apart from training overseas talent, ignoring locally grown talent and forgetting about the next generation of wealth makers in the UK. Looking at the actual applications. A breakdown shows a 4% decrease in UK applicants, while the number of EU students planning to study at a UK university or college has fallen by 5%.
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Post by yorkshireman on Aug 15, 2017 17:49:19 GMT
There's a building called Renslade house, which is about 10 stories tall on the edge of Exeter city center, overlooking the rive Exe. It's currently being redeveloped as a Holiday inn and student accommodation Sounds like Holiday Inn is going further downmarket into the “budget” sector competing for stag and hen weekends, which should seamlessly complement the student accommodation. 
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gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
Posts: 256
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Post by gibmike on Aug 15, 2017 20:19:48 GMT
Less UK students = more foreign students = higher fees for Universities. Nothing wrong with this apart from training overseas talent, ignoring locally grown talent and forgetting about the next generation of wealth makers in the UK. Looking at the actual applications. A breakdown shows a 4% decrease in UK applicants, while the number of EU students planning to study at a UK university or college has fallen by 5%. It is non-EU students who bring in the real money.
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