Landlords planning to expand their portfolios have been warned to steer clear of so-called student pods, Investors Chronicle has reported.
It says that while they are widely marketed as low-risk property investments with ‘assured’ yields of up to 10%, both prices and returns are inflated, while the risks are not disclosed.
Furthermore, agents are incentivised to sell them by commission as high as 20%.
Investors are being tempted to buy student pods, which are typically studio bedsits in purpose-built accommodation blocks, on the basis that they are hands-off investments where all the management is handled on owners’ behalf.
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