UK Firm Wants Students to Invest In Real Estate

Monday, 03 March 2008

Reported by Mike Gagnon

Going away to college or university is a time of change, growth and independence. For many it is their first time moving away from home. If UK mortgage firm Capital Fortune has its way, going to school will also be the first time you buy a house.

Their new “Buy-to-Rent Student Mortgage” is aimed specifically at earl 20-somethings moving away to a new town for the first time to attend school.

The premise is that rent in college towns is spiraling out of control and that there is a shortage of clean, affordable, quality housing for students.

Under the student themed plan savvy college kids would invest in buying a clean spacious house to live in, but also to rent out portions or units to fellow students who are also moving out on their own for the first time. In this way the results are supposed to achieve the somewhat altruistic goals of providing clean affordable places to rent for students, while also generating an additional income for the student owner to help with bills and college expenses.

The new concept is interesting to say the least, and was only announced this week. It has yet to be rolled out nationally, so only time will tell if this is an idea that will actually work, or if the hype falls short of the lofty goals it promotes.