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7 Reasons To Consider Investing In Student Housing

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1. Steady Demand

Student housing tends to experience consistent demand, as there is a continuous influx of students every year seeking accommodation near educational institutions. This steady demand can provide a stable rental income stream, making it an attractive investment opportunity.

2. Potential High Returns

Investing in student housing can offer the potential for higher returns compared to traditional residential real estate. With multiple tenants occupying a single housing unit, rental income per square foot can be maximized, leading to increased cash flow and potential profitability.

With by-the-bed lease contracts, student housing properties are often designed to accommodate multiple students in a shared space. Apartments or houses with several bedrooms typically yield a higher lease per unit than conventional multifamily properties.

3. Resilience in Economic Downturns

Investing in student housing allows for long-term investment opportunities. As universities and educational institutions typically have long-term growth prospects coupled with a longstanding purpose-built housing supply shortage, the demand for student housing remains relatively stable. These characteristics can provide a measure of protection during economic uncertainty.

4. Predictable Rental Cycles

Student housing lease cycles typically align with the academic year. This means that leases are often signed in advance, giving property owners more predictable and stable cash flow compared to traditional residential properties, where vacancies might be more sporatic. With leases signed in advance, occupancy rates are very high. As a result, there is a reduced risk of prolonged vacancies, ensuring a steady stream of rental income.

5. Geographical Diversification

Investing in student housing across different educational institutions and regions can provide geographic diversification to an investment portfolio, reducing risk associated with localized market fluctuations.

Additionally, purpose-built student housing benefits from proximity to the long-standing economic anchor of a university. This makes student housing significantly less susceptible to variances in job markets and employment trends than conventional multifamily assets.

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6. Close Proximity to University

In many cases, student housing properties are located close to universities or colleges. As a result, real estate firms can charge a premium for the convenience and proximity to campus.

Students are often willing to pay a higher rent to live closer to their educational institutions, which can lead to increased rental income and potentially higher returns.

7. Parental Guarantor

Parents or guardians co-sign leases for student housing, offering an additional layer of financial security to property owners. This parental guarantee can reduce default risk and provide more peace of mind for investors.

Not an offer to buy, nor a solicitation to sell securities. Private Placements are speculative all investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only.

Securities Offered By WealthForge Securities LLC. Member FINRA/SIPC.

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