I'm attracted by the high yields offered on new build student accommodation (e.g. 10% net yield guaranteed for 10 years), but what happens after that? What experience do members have of income levels after the initial honeymoon period?

Further, what additional charges are made, e.g. for ground rent, maintenance etc? And are there any issues with such accommodation units being leasehold property and around ownership of the freehold?

And is there a website listing all such investment opportunities in the UK?

"There's no such thing as a free lunch", so are these deals just too good to be true? Your advice will be very welcome!

Thanks
Peter

Unite Group (UTH) is, at 650p, near its all time high of £7 so probably best to wait for the next dip. It is very cyclical having been down to 100 twice since 1999 and down to 50p in 2009. Highs have been 426, 550 and 700p. Dividends have risen from 0.83p in 2001 to 9.5 in 2015 with a rise expected this year.

It builds then sells on and manages purpose built student accommodation. There is on site management of 125 properties in 25 cities.

Unite shares have broadly tracked the FTSE 350 sector Real Estate Investment and Services. Which is far more volatile than the FTSE 100. The peaks and troughs seem to mirror things like the dotcom crash and the 2007 debacle. Presumably investors switched into FTSE 100 mega caps at these times. Logic and the stock market part company from time to time. I suppose that Unite has some specific issues with political decisions on university and student funding but generally, property is cyclical.

My data is from Sharescope which uses official sources.

I have visited students in Unite accommodation and confirm that it is well kept and adequately equipped with communal gym and sports facilities as well as satellite TV. It is compact rather than spacious, but the right side of claustrophobic.