More parents predicted to purchase student property in Scotland

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Edinburgh property company, Grant Property, has predicted that the number of parents buying buy to let student properties in Scotland will “skyrocket”. This is their conclusion after accountants PwC forecast that house prices in Scotland will rise by 20%

over the next five years.

John Moran, MD of Grant Property, commented that buying buy to rent property is an attractive investment for parents of students. The property can generate income from students and save their son and daughter rent. After their child has graduated, the property can be sold and should make a profit from capital growth.

He was quoted saying:

“This is already a popular arrangement for astute investors but is about to become much more popular due to the knowledge that property in Scotland is a safe bet, and as parents see it as a way to make their money work for them and for their kids.”

He described one arrangement where a parent buys a property then gifts their son or daughter a percentage of the property, which can be as little as 1%. A formal agreement is drawn up where the student receives all of the income generated and lives rent free. As a student, the income will probably be tax free which probably would not be the case if the parents received the income.

Any parent considering this strategy should get legal advice and use a mortgage broker to find the best commercial mortgage deal for purchasing student property.

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