It’s a familiar story, your child has decided to go off to university and you as the parent are thinking about turning their education into an investment by way of the student rental property. You have done your research, the numbers work, and you are financially prepared to make the purchase of a student rental, good to go, right? (buzzer noise) Not quite.
Student rental investment season in Guelph is right around the corner, and even though you are financially prepared to take on the investment, it is important to make sure that you are also mentally prepared.
Kyle Woods puts in to perspective the busyness? craziness? hectic nature? SPEED of the Guelph rental market in his latest blog, which I’ll leave a link to at the end of this one. In the blog he talks about how quickly things move and mentions 3 ways to prepare yourself; find a local Guelph realtor, get your financing in order and be strategic, be open-minded and willing to sacrifice. All of these are very important aspects of a successful student investor and I would like to add to it by focusing on the importance of getting into the correct mindset.
The first important word that comes to mind when I think of how to describe the student investor mindset is ‘objective’.
Being objective does not mean that you need to sacrifice a decent place for your child to live to make the numbers work, it just means that you are staying focused on the investment side of the purchase, making sure that the numbers do work and that the investment will pay out. Keeping your emotions out of the purchase as much as possible.
During the first two and a half months of the new-year there will be many more people looking to buy a student rental than there will be properties available to purchase. This will lead to multiple offers on houses and multiple potential buyers having their offers rejected. Leading to the second important word in the student investor mindset, ‘resilient’.
A student investor with a resilient mindset will not be discouraged by rejected offers because they will have prepared for them and understood that they are part of the process in buying a rental property. These buyers will be able to stay objective throughout the process and ensure that the property they do eventually purchase will be a good investment.
The final word I am going to use to describe the investor mindset is ‘confident’.
It is incredibly important to be confident, from the beginning of the purchasing process, that buying a student rental is something you really want to do. Being confident will allow you to put an offer in on the right property when it comes up without hesitation. This is beyond necessary in a market where sales happen quickly because taking a night, or even an afternoon, to think it over could be long enough for a more mentally prepared buyer to put in a firm offer and have it accepted before you even get the chance to put your offer in. It is essential to be ready to act quickly.
This blog is not meant to scare away any unsure potential Student rental investors. It is meant to help prepare you for the season ahead and make sure you are the most capable buyer you can be, from the beginning of you rental property search.
Don’t forget to give Kyle’s blog a read to help round out your preparation process.