Invest in student accommodation – The concept explained briefly (danish)

Investering og Studiebolig is a balanced and long-term sustainable concept, where er et balanceret og langsigtet bæredygtigt koncept, investing with both heart and brain. By combining an annual return of 7,8% with satisfied tenants (students) that lives with a reasonably priced rent and normally receives their full deposit back when they move out (please read our requirements).

The return of 7,8% anticipates an annual value increase of 1,5% on the apartments, and that the company’s capital is fully invested with a vacancy of 2 weeks annually, per apartment. Generally, the vacancy has been very close to 0 with the exception of apartments that have been renovated, following the purchase. In a growth phase where many apartments are being purchased, there will be a higher vacancy than usual.

Investering og Studiebolig A/S was founded in 2015, and ever since, the prices for apartments have increased. Whether or not this will continue in the future, we will not be able to promise you. With that said, historically, the prices have always increased over the years.  Looking at a long-term basis, there is reasonable certainty that Investering og Studiebolig will be a good investment for you- also considering the spread of risk. In the meantime, you will be able to help children, grandchildren or others of your choice to student accommodation at a reasonable price and on reasonable terms.

Students will be able to rent a studentroom in Copenhagen and Aarhus at the low price of around 4.000kr. including internet, utilities (water, heating, electricity) and full access to washing facilities. In Odense, Aalborg, Kolding and other student-cities, the prices can be as low as 2.400kr.

The capital for the apartments is acquired by parents, grandparents, the students themselves or an investor in general when they buy shares in Investering og Studiebolig A/S. The investors receive an annual return (expected 7,8%) and will be given priority to our student rooms, for them to give to whomever they wish or to keep. Investering og Studiebolig A/S buys apartments in the cities that investors desire it. All shareholders have had their housing wishes fulfilled. Investering og Studiebolig have also rented out to the public in order to minimize vacancy costs.

Investering og Studiebolig is a good investment as an alternative to bonds. Investering og Studiebolig can also be referred to as collective parent-buy, and a help to students that need housing at a reasonable price and at reasonable terms. We buy apartments according to our investors wishes and as an investor, you will therefore be very certain to get a student room in the city you desire (presuming we will receive your request in time for us to fulfill it). So far, all shareholders have had their housing requests fulfilled.

There are 3 different ways to invest:

  1. With savings (free ressources)
  2. Through pension funds
  3. Money from companies

Ad 1.: When the subscription form is signed and the capital increase is completed, you will need to transfer the amount for which is presented; minimum 120,120 kr. (one hundred and twenty thousand, one hundred and twenty DKK) to the lawyer company: Skov Partnere. The lawyer will review and make sure that all conditions for a capital increase, are present. Then the capital increase will be completed and you will become a co-owner/shareholder. Taxation of the return is made in accordance with ordinary equity gain rules. In 2017, investors in which have invested with personal savings, are taxed 27% of the first 51,700kr and 42% of share income beyond 51,700kr.

Ad 2.: When the subscription form is signed and the capital increase is completed, you will need to transfer the amount for which is presented; minimum 120,120 kr. (one hundred and twenty thousand, one hundred and twenty DKK) to the lawyer company: Skov Partnere. The lawyer will review and make sure that all conditions for a capital increase, are present. Then the capital increase will be completed and you will become a co-owner/shareholder. If you are part of your investment in a bank-controlled program, you can invest according to current rules. Furthermore, it is possible to combine pension funds with free funds. You pay 15.3% in PAL tax (tax on pension) on dividends included and the annual increase in the value of the shares.

Ad 3.: When the subscription form is signed and the capital increase is completed, you will need to transfer the amount for which is presented; minimum 120,120 kr. (one hundred and twenty thousand, one hundred and twenty DKK) to the lawyer company: Skov Partnere. The lawyer will review and make sure that all conditions for a capital increase, are present. Then the capital increase will be completed and you will become a co-owner/shareholder. As a company investor, you will be taxed with a corporation tax of 22% of the 70% of the dividend, giving an effective tax rate of 15.4%. Other advantages also include herudover er, that as a corporate investor, the actual increase in value will be tax-free on sale, regardless of ownership.

We also want to refer to the current prospectus and advice from your own lawyer and accountant.

Sales of your shares

The shares are valued on an ongoing basis based on independent assessments of the value of the apartments. The exchange rate is thereafter set which can be traded both through Investering og Studiebolig or directly between the shareholders. We make capital increases twice a year – the shares can in this situation be sold.

Investering og Studiebolig will also offer buybacks of the company’s shares.