Study in the UK without spending a penny, about how to support your studies with your house in Londo
The UK is a country with a long tradition of education and world class educational resources, and is sought after by international students from all over the world. In recent years, more and more international students are flocking to the UK, and the UK has become the second most preferred country for Chinese students to study in, apart from the US.
It is a common investment concept in the study abroad circle, by purchasing overseas properties and using the appreciation of the house to compensate for part or all of the study expenses, in short, the study expenses = property appreciation + rental income, thus realizing 0 cost study abroad.
However, not every popular study abroad country is suitable for "housing for study", but the UK has its unique advantages
Favorable policies in the UK
First of all, according to social habits, housing prices and housing costs in the United States are relatively high. In Canada, the number of international students is limited, and it is difficult to rent and change the house. Australia was once very friendly to overseas buyers, and housing for education was once prosperous, but with the introduction of restrictive policies for overseas investors in Australia, overseas buyers have less and less options to buy a home there.
In contrast, the UK government is still open to overseas investors, so it is certainly a good time for Chinese buyers to take advantage of the low pound exchange rate to buy property.
The UK also has "school district housing"
Similar to China, primary and secondary education in the UK is based on the principle of proximity, but the difference is that school admission is not restricted to the children of the owner of the school district, and all children living in a specific area around the school can attend the local public school. As long as you buy or rent a house near a school for a certain period of time, your children will be eligible to apply for admission, so many parents choose to move to the appropriate school district long before their children attend.
Property appreciation is high, with London being the best
In addition to rental returns, property appreciation is also a major source of income for "housing for education". Over the past 20 years, the average house price increase in the UK has been 236%, and in London it has been as high as 402%.
With more and more students and job seekers coming to London, and local government restrictions on developers developing new buildings, the property market is still in short supply and the rental market has been dominated by a seller's market for a long time, given the shortage of land and people. The huge demand potential is one of the important factors for property value preservation and appreciation.
In addition, the dense number of prestigious schools in London also makes a difference. Some of the most prestigious schools located in London are Imperial College (IC), London School of Economics and Political Science (LSE)
(LSE), King's College London (KCL), University College London (UCL), etc. They are the best universities in the UK besides Cambridge and Oxford, and the constant flow of students contributes significantly to the long-term real estate activity in London.
In July 2021, UCAS released the latest data: under the epidemic, the number of global applications to UK universities is still bucking the trend, with 682,000 students submitting applications to UK undergraduate universities, up 4% year-on-year.
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The number of Chinese students applying for undergraduate study has reached a record high, up 16.6% on the same period last year, with a total increase of 4,060. （For the first time in history, the number of applications from China exceeded the total number of applications from the entire EU (as of June 30, 2021).
In contrast to the increasing number of students, the cost of living in London is becoming increasingly expensive.
According to the BBC, it costs more than £51,200 a year to rent a room in London and live on your own. With the average university student earning £30,000-£40,000 a year after graduation, figures show that most international students need to provide 50-99% of their salary to rent, and that housing is the number one factor to consider when seeking employment in the UK.
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Take the wealthy gathering place Canary Wharf for example, from 2020 to 2021, the number of rentals in Canary Wharf has increased by 63%, rental inquiries in the area have increased by almost 125% compared to the same period last year, and rents are even higher.
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It's fair to say that the high rents are putting off many parents. But there are some resourceful parents who not only get their children to study well, but also make hundreds of thousands of pounds without spending a penny during their studies. Because they have found the right way to study abroad: the secret of using your house to support your education.
What is housing for education?
As the name implies, "housing for education" is to buy a house overseas to support overseas study, that is, to buy a property overseas and use the appreciation of the house and rent to make up for the cost of studying abroad.
Normally, tuition fees in the UK increase by 3%-4% per year, while house prices in London increase by 6%-7%. House prices are increasing faster than tuition fees. For the majority of international students who have the foresight to invest, they can make a lot of money while meeting their housing needs through "housing for education" as early as when they enter university!
Is it a good deal?
Take a 1-bedroom property in the City of London as an example. Suppose you study in the UK for 5 years, during which the annual tuition fees and living expenses are about £ 30,000, buy a house for £ 600,000, house rental income conservative 400 pounds / week, that is, £ 1600 / month, the average annual growth rate of London property value is 7%, hold for 5 years, and then sell.
House price of £ 600,000 house, an annual increase of 7% for £ 42,000, held for five years is £ 210,000 income.
Rent of £400/week, £1,600 per month, held for 5 years is £80,000 gain.
Study abroad expenditure of £30,000 per year, study abroad for 5 years is £150,000 expenditure.
The final gain: £21 + 8 -15 = £140,000, which means that after 5 years of study you can still return home with £140,000.
Take a real-life example to see the benefits of using your home to support your studies -
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If renting a house to study abroad is pure consumption, then buying a house to study abroad is an investment type of behavior. You can use the stability of the value of your property to offset the cost of studying abroad and achieve "zero-cost study", which is a triple benefit of education, housing and investment.
Thus, it can be seen that "housing for study" is a very suitable way for Chinese families to study abroad. At the same time, for families in first-tier cities such as North, Guangzhou and Shenzhen, £600,000 is not too much pressure to buy a house in London. It can be said that buying a school house in London is a solid investment for both students who study in London all year round and property investors.
What kind of house is suitable for a house for school?
Not all homes are suitable for schooling.
Generally speaking, a new home is a better investment choice than a second home. The maintenance costs of second homes are usually higher than those of new homes. An important factor in achieving home ownership is maintenance costs; it is difficult to assess the various maintenance costs that will be incurred after investing in the property before purchasing it. Therefore, a new home can reduce uncontrollable risks.
Secondly, the location of the property is directly related to the rental income and return on investment. A property located in the core area of London, surrounded by rich educational resources, is not only convenient for children to go to school, but also has a more secure income.
Even if you don't have children, choosing to buy a property near a good school is a safe choice, as student accommodation in the UK is limited and there is a huge demand for housing for students in areas close to schools.
The above is for reference only
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Thamesestone Homes is the investment arm of a large UK student accommodation
and property management company in the UK.
The team consists of investment experts who have been working in the overseas real estate market for many years
dedicated to providing Chinese high net worth clients with secure, stable
We are committed to providing Chinese HNW clients with secure, stable and comprehensive overseas asset allocation services.
We specialize in UK school property investments and only recommend properties in areas that are easy to rent or sell.
After the transaction is completed, the property can be handed over to our professional team for charter management
We can provide you with a stable return on your investment.
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