You might think that owning property near an educational institution isn’t a great idea. Still, it’s a potential goldmine for great rent if you convert a building into a student residence. While it is illegal to do business in residential areas, many hostels operate in separate areas. Their appearance may not give even a small idea of whether this is a student house or just another house in the aisle. This tactic may not work in societies such as Bahria Town, DHA, or other cooperative housing societies that adhere strictly to their policies.
Regardless of the legal status of managing hostels for students in residential areas, it cannot be denied that these hostels are a source of significant income and a lack of stress. In big cities, many people run student hostels and charge student fees ranging from Rs 5,000 to 15,000 per month or even more depending on the hostel’s location and distance from the bus stop, educational institutions, and various other facilities. Besides, student residence rentals also vary based on the amenities provided, including adjoining bathrooms, backup power, meals, Wi-Fi, security, etc.
Good Earnings
While you will need a huge upfront investment to build a hostel, the return on that investment is likely to be very nice. And if you can not afford to invest, you can simply convert your home into a hostel and find yourself a rented apartment next door. The hostel’s profits will probably be enough to let you pay the rent while providing a good amount of bread and butter and meeting your needs easily.
Resistant to Major Economic Fluctuations
Even in difficult times, the work of higher education continues to work in full force. And as long as people have children, this trend will continue. Regardless of the economy’s state, most Pakistani parents these days choose to send their children to college and/or university. The education industry also resists severe economic fluctuations.
Correct Location
Also, the right product in the right place will be in high demand from the renter. Investors are also showing increasing interest in student housing as an investment, as a good (student) rental property in an ideal location can provide significant returns.
High Return on Investment
To determine if it is a suitable investment product, investors make sure that the hostel is easily accessible, preferably using public transport such as buses, LTC, Speedo, etc. Moreover, they pay attention to the availability of amenities, including retail shops, stores, and restaurants. In addition, the area should have a low crime rate.
Safety and comfort are high on the checklist of the student’s parents. Due diligence is especially important here; investors should investigate the surroundings in advance and not rely on past trends. Plus, it’s definitely a great long-term investment plan with a high ROI.
So, what do you think of this investment? Share your thoughts in the comments.
