What are the pros and cons of buying a unilodge studio.
These are I think nras accomodations
Invest in Unilodge studio? (NRSA Acco)
10muscat on 26/07/2016 - 09:47
Related Stores
Comments
Lots of kids from the country or from another state live in unilodge too. Not all international students.
The vast vast majority though are International students.
Probably depends on the Uni. I used to live opposite a unilodge and it was all white country kids living out of home for the first time.
I'd disagree with you - most of the international students come from middle class background with average (or below average) financial situation. Most of the time their parents have taken a loan to send them here including airfares/fees. plus they end up paying higher (or almost double) uni fees compared to local student. plus they pay full travel fare and ineligible for concession (at least in VIC). overall they are indeed supporting other local students and contributing to australian economy.
Speaking as credit advisers we've seen the following pros and cons with small size student accommodation and NRAS:
PROS:
- Relatively high yield (NB: refer to possible cons such as admin costs).
- Relatively low price points may be appealing to investors with smaller budgets ~$180K is pretty common as an entry point.
- Possible tax incentives.
CONS:
- Limited capital gains
- In most cases you can't move in yourself
- Potentially high admin costs
- Only a limited number of lenders will lend for NRAS/student and the LVRs are typically on the low side for attractive pricing.
- Resale and tenant market can be more complicated than non-student/NRAS properties.
Hope this helps.
What does Unilodge charge to admin the studio?
What are vacancy rates like?
I had a bit of a look at these some years ago, and the return was good if it didn't lie empty between semesters, and management fees are not too high.
Do you have a link for the NRAS info?
I thought NRAS ended?
why they have been classified as nras? the overseas students are much richer than average australian, they should support us not government support them.