Reits are Wrongs

Published: Tue 26 May 2020
Updated: Sun 01 January 2023
By steve

In markets.

I’ve been very bearish about ‘purpose built student accommodation’ for a long time. The UK has been following the US in tertiary education, just as it always follows it in primary and secondary education.

I have some experience of renting to students. It’s not easy, and it’s not lucrative. When you pile on a stack of intermediaries between the investor and the tenant, the margins stack up to the point that even with high rents the equilibrium return to investors will surely be mediocre.

It would be wonderful to take advantage of this situation, but with governments throughtout Europe pumping money into the corporate sector it’s just too dangerous to be short anything.


References

Student Housing, One of the Most Hyped Asset Classes, Runs Out of Students

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