Income from rental purpose built for students

[Treek123]

Hi
I am interested in buying an apartment purposely built for students. It is managed. I own my own home . I’m trying to find out the tax implications and also how would the property be classified as it’s not a second home . Thanks in advance if anyone can help or point me in the right direction

 

[RedOnion]

@Treek123
Are you a cash buyer? These are very difficult to get mortgages against.

The tax is straightforward. When they were originally built some of these has special tax breaks (section 50), so unless you're buying one within 10 years of first rental with unused tax reliefs there's nothing complicated about it vs any investment property.

 

[Treek123]

Thank you for your reply I am a cash buyer, I was thinking this would be a good investment for my savings, and unlike renting a private apartment, it would be less trouble

 

[ClubMan]

I was thinking this would be a good investment for my savings

That really depends on your overall financial/personal situation.
And I'd wonder about it when you're asking basic questions about tax and property status.
Maybe post a Money Makeover to get more informed input before doing anything rash?

Money makeover

Budgeting and dealing with debt moved to Mortgage Arrears and Debt Forum .

www.askaboutmoney.com

 

[cloughy]

You need to think how will you liquidate it if needed, the market for those buying student accommodation would be a lot less than those looking to buy a house/apartment to live in.
Who pays for upkeep and repair, as I assume students would be transient so could be more damage or annual maintenance for best college year.
What's the return, where is it located, what are the net returns that then would be taxable etc
Would have to look at in overall portfolio, as if you wanted to sell up, I'd say its a slower process to find a buyer than alternative property investment.

 

[Treek123]

That really depends on your overall financial/personal situation.
And I'd wonder about it when you're asking basic questions about tax and property status.
Maybe post

Thank you

You need to think how will you liquidate it if needed, the market for those buying student accommodation would be a lot less than those looking to buy a house/apartment to live in.
Who pays for upkeep and repair, as I assume students would be transient so could be more damage or annual maintenance for best college year.
What's the return, where is it located, what are the net returns that then would be taxable etc
Would have to look at in overall portfolio, as if you wanted to sell up, I'd say its a slower process to find a buyer than alternative property investment.

thanks That’s great information