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Jul 28, 2006
According
to a Moneyfacts analyst, parents of university-bound students can enjoy savings
on rental costs and generate extra income as well by purchasing a buy-to-let
property for their children. However, Business Moneyfacts Editor Lee Tillcock
says there is a need for parents to learn more about this option.
“By
buying a house and letting any spare rooms, the rent should cover the mortgage
repayments and possibly more, providing rent-free accommodation for their
child. Once the course finishes they may decide to pocket any capital gain or
keep the property as a longer-term investment,” Tillcock says. “The latest
Business Moneyfacts survey confirms there are almost 40 lenders who would
consider student lets, so there is certainly choice in the market, but
encroaching legislation and other purchasing options need to be considered
before a parent enters the fray.
According
to Halifax
research, university dwellings have historically provided above average returns.
Stats show that the average rise in property prices across cities and towns of
the top twenty performing universities over the past five years was 88 percent,
while the largest universities by size outside of this list saw property prices
rise by 100 percent.
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