Student accommodation in Newcastle has often been in short supply for students and in high demand by investors for its higher returns, often giving the investor a positively geared investment. However with the new student accommodation buildings at the University of Newcastle Callaghan campus now completed this has changed the dynamic somewhat.
While some would argue that not all students want to stay on campus, this is true. However, over the years there have been a number of incidents of assault & racial abuse directed toward some international students. These students would then be more inclined to stay on campus with the security & safety of having on campus patrols. International students are choosing to stay in other countries for their studies such as Canada where immigration laws changed recently. Property managers I have spoken with have advised landlords to start on improving the standard & inclusions (such as broadband internet) of their student rooms as expectations are already starting to rise of what students expect. Toward the end of last year there was also a noticeable increase in the number of properties that would have been student accommodation but were disposed of due to a lack of occupancy.
Those considering purchasing a property close to the University should take into consideration this project and be mindful that the huge returns may no longer be there. It may be prudent to look at properties closer to the CBD where there will be increased demand when the Business & Law faculties relocate to the city in the next few years. Suburbs like Islington, Wickham, Hamilton, Cooks Hill & The Hill where there are affordable investment properties that are close to transport or walking distance to the new inner city campus site.
Another reason to buy near the University if you yourself have children planning to study there. Buying an investment property could work out cheaper than subsiding your child’s accommodation either on campus or in a private rental.
Besides the University of Newcastle, Hunter New England Health is other biggest employer in the region with a number of facilities spread throughout the region. Properties close to the John Hunter campus are often sought after for people working at the hospital as due to the nature of the work, a long commute home is not desirable.
Away from renting out homes by the room, there are other options such as renovating or adding a secondary dwelling to turn a property into a positively geared investment.
If you or someone you know is looking to buy near the University or hospital, you can get in touch by email help@newcastlebuyersagent.com.au or 0438502371
