AIBU to consider buying a student flat on the seaside to use for holidays in Aug?

[tashka]

Hi everyone

I am a single mum with a toddler, I have a decent job and saved a bit of money and I am considering the idea of buying a 2-bedroom flat somewhere on the English seaside near a university, so that I can rent it to students during the year (to cover mortgage) and then use it as a holiday flat for myself and my DD in August.

What do people think about the idea in general? So far I can only see the positives - provided I can get something within walking distance to the beach and rent it to students during the year, I can save all that money on summer holiday rent! I have been going on holidays in June and September previously, but my DD will start school nursery soon and the prices in August seem extraordinary - twice as much!

You also have to think of tax implications though and if the local council/management company would allow you to let like that.

Vast majority of mortgage lenders have very strict criteria around lending for student lets

and I think you would have to pay capital gains tax when the house was eventually sold, on the basis that it hasn't been your primary residence

Stylishmummy and allthegoodusernames are right.

DP's ex looked into doing something similar when their son was at uni in Bournemouth. Even with her contacts (she's got her own tax consultancy and has all sorts of connections with mortgage brokers etc, and owns a couple of BTL properties) she found getting a mortgage for a student let a complete pain in the arse.

Landlord insurance for a student let was very expensive and beset with so many exclusions that she decided it really wasn't worth it.

Probably a bad idea if you aren't near by.

Renting to students is generally quite full of hassle - the hoover broke (you hoovered up a coat hanger you wally) on one side, to messages saying they think there 'might' be a problem with the bath and when you go to investigate the bath has been leaking down into the kitchen for months and has rotted the floorboards but they didn't think to say anything about the drip drip of water.

It would be much easier to just rent somewhere to use for a holiday.

Disagree, you'd get loads of interest! As a student it was a nightmare having to pay for 2 months of rent when you were miles away at home! Sure some students stay over summer but they are by far the minority.

I agree - 10 month lets woudl actually be good as a student. I was the only person in my 5 bed house over the summer one year (cos I purposely got a summer job in that city not home) and the other summer none of us were there!

mojito55 Barely any student lets begin in July. Sorry just not true. I have had two DC in different unis over the last 5 years. Every student let has started in July. Not by their choice. DD is looking for new accommodation for next September and I have trawled the agents in the area. All start July.
I should also add that they have always left the huses clean and tidy and got full deposits back.

thank you so much everyone for your responses! I will need to think hard about this and consider more things than I thought before...

My mum has a student flat in St Andrews. It's v common for students to have academic year leases. It is however, very expensive to buy there now.

FakeMews well I am a student with three siblings and obviously a lot of friends who are students, and I've never heard of a student let beginning in July, either in halls or private accommodation. Some are yearly from September, but due to the timings of loan payments I can't see how it would even make sense for a student contract to begin in July. Perhaps things are different in different parts of the country.

Might be worth checking with the local university of which towns you are thinking of to see if they can advise you on future demand. For example, I live near Bournemouth and the university has massively increased its own accommodation, which might mean a smaller demand for the privately owned accommodation.

Be careful about a student let. I know someone who does this type of letting and more often than not the accommodation gets trashed. Ironing done on the carpet, general nuisance, complaints from neighbours, tenants falling out etc.

Perhaps a flat as a holiday let instead? Higher weekly rental charge and hopefully not so much hassle with renting it out.

It sounds Like a nice idea but I think you need to weigh up the ‘landlord’ bit – think about what you’d do if they called you on a Sunday to say the boiler was broken and they had no hot water and you’re miles away? how often you’d do house inspections? how much rent you’d charge which would cover the mortgage but students would still be able to pay? would you pay an estate agent to manage the property for you? (Expensive), what happens if they don’t pay their bills and after they move out creditors are coming round? (Happened in a house my friend lived in at uni, previous tenants didn’t pay and she had to prove to the bailiffs she wasn’t them).

Being a landlord is a lot of work, you have a responsibility to your tenants and you run the risk that your property might not be returned in the condition you let it out in. Be sure you’re going in knowing all of this, I think some people think about the monetary gains of letting without understanding the responsibilities that come with it.

Every student let I’ve ever heard of begins July 1st. You would get tons of interest OP, my DD who is currently in her second year at uni says everyone she knows was moaning their arses off about how they had to start paying in July. She says she only knows one group of friends who stayed in the house over summer.

Great idea most students hate having to pay rent all year round. Falmouth?