If you're looking for strong yields and steady income from your rental property investment, you need to go where the people are.
Plenty of savvy property buyers have already discovered that universities provide a steady stream of new potential tenants, and a new report from Savills supports this.
"Student housing has the potential to become a significant and established asset class because of the enduring nature of the institutions that it serves," Savills said recently.
"Student housing produces reliable rental income flows which, although derived from short tenancies, is secured by depth and stability of demand, often matched by low levels of competing supply."
In addition to Australian students, those buying investment property can also count on international interest thanks to trends regarding global education.
"International education is increasingly conducted in the English language. English-speaking nations also tend to contain some of the world's most sophisticated and transparent real-estate markets which are internationally invested," Savills continued.
With this in mind, it's not surprising that Australia has plenty of potential for investors looking to rent out to students studying abroad.
Research showed that student housing reached a new high of investment during 2013, growing from US$3.4 billion to US$7.2 billion over the last six years.
This is one opportunity investors in Sydney are perfectly placed to benefit from, as a recent report from AT Kearney showed that the New South Wales capital is the world's most popular city to study in.
Sydney came out on top against 83 other cities, including London and New York.
And with the city hosting 50,000 visiting university students, along with another 50,000 students studying vocational and English courses, the potential for strong returns is clear.