The government increasing tuition fees in the UK is not the only financial barrier facing students and their parents when it comes to attending university, especially if they want to go to one far from home. The cost of renting accommodation adds to the financial burden for families wanting to partake of higher education.

However, parents can, if they have the means, take it as an opportunity to start on one of the best forms of investment – property. Prices might be stagnant at the moment and finance hard to find, but if parents have access to a decent sized deposit, then they could take the following steps to both assist their children and provide a nest egg for the future.

Let\’s say a student has been accepted to a university in Manchester but currently lives with their parents in London. Ordinarily the student would either try to find cheap accommodation through the university or get somewhere to rent, often with other students to reduce the cost. However, the parents could look to buy a property close to the university, which has a number of benefits.

Firstly, it means the child has to pay little to no rent, reducing the cost of their university stay. Secondly, the property could also be let to other students, bringing in income and helping to cover the cost of any mortgage on the house. Finally, that property becomes an investment for the future. Here\’s how.

On average, property prices double every ten years. Obviously that varies depending on type of property, area and market conditions but overall the value of a property will go up the longer you hold on to it. That means that for the parents they have a sound investment for their retirement and old age.

During the time they own the property, even after their child has graduated from university and moved out of the property, they can continue to rent it out to groups of students in order to cover the cost of the mortgage on the property. In an ideal scenario, they could even pay off the mortgage early, which would mean any rent would be additional income for them.

There are, however, certain dangers. Firstly, finding the right property, which is not easy when you don\’t live in the location you\’re buying in. Here, using the Manchester / London example, it would be a good idea to find an estate agent in Manchester and have them advise you on the best areas for student living and the right types of property to look at.

Then, once you have found and purchased the property, using a Manchester letting agents will cut down on the time and effort it takes to manage it. They can collect rent, carry out inspections and arrange for the (inevitable) maintenance of the property to be carried out, including repairing any damage.

By finding the right sort of agent, parents can become investors and enjoy a sound investment while also putting their child through university at a reduced cost.

Ben Greenwood is writing on behalf of Shepherd Gilmour, estate agents Manchester.

Ben Greenwood is writing on behalf of Shepherd Gilmour (http://www.shepherdgilmour.com), Manchester estate and letting agents.

Author Bio: Ben Greenwood is writing on behalf of Shepherd Gilmour, estate agents Manchester.

Category: Real Estate
Keywords: manchester letting agents, manchester estate agents, property investment