S2S (Student to Student)

So its been no secret that I've been in the market to purchase an investment property recently.

The property in question is a 4/4/2 student accomodation unit within a resort on the Sunshine Coast. It has a a good yield, good location, and is located in a prime suburb and is a short (10 minutes) drive away from tourism, commercial and future industrial centres.

Been reading on how to maximise the rental returns of such a property. Anecdotal evidence suggests that demographic-specific catering can raise rents exponential to the cost of extra investment.

So, I've been thinking, what would I like to have in a unit as a student who has just arrived to start university with nothing but the clothes on my back and maybe a suitcase full of sentimentals?
* A desk for study ($100 per room - $400 total once-off) +5pw x4 - +20pw
* A broadband connection ($200 installation + $60 per month) $10pw x4 - +$40pw
* A lounge bed for my friends to stay over ($300 once-off)+$5pw
* A television ($200 once-off) +$5pw
* Air-conditioning ($1500 once-off) +$10pw

So, if I potentially added all of these things onto the base price, I would be getting $80pw more. At 80% occupancy, thats an additional $3360pa. But how much is my expenditure?

In the first 12 months, my expenditure would be $3320 on those figures. Cost neutral in the first year? not too shabby! Don't forget that 'taking care' of these amenities often places the unit in higher demand because students, being somewhat lazy and prone to procrastination, don't like to handle these things much.

The next 12 months are where the benefits come into their own. All one-off payments are accounted for, meaning that the only ongoing costs are internet at $720pa. Subtracting that from the increased rental and my returns in the second year will be a tidy $2640.

Not bad at all.

What sort of additions would I include for an inner city apartment tailored for young professionals or working couples?