Investing in private student accommodation

With the significant shortage of available student accommodation at tertiary education facilities, many parents are looking for private housing options close to where their children plan to study.

“Top of mind is the decision of whether to buy or rent and weighing up the advantages and disadvantages of both,” says Misty Kesting, an estate agent at Knight Frank Residential South Africa in the Claremont, Rondebosch, Rosebank and Newlands areas.

“The benefits of buying a property are that you will be making an investment and not spending money on rent. On the other hand, renting means there are no transfer fees, property maintenance costs and mortgage instalments. However, if you can afford it, it is worthwhile to consider buying a property that in the long run can earn you money as well as having a permanent place for your child to occupy for as long as needed.”

Apartments where children can possibly live with their friends for a few years are popular choices for parents, however safety concerns are often a priority.

“Parents in Durban and Johannesburg are very safety conscious and usually look at blocks with 24-hour security and these typically have higher levies,” Kesting says.

“Other options are the older, 50s-style blocks and art-deco complexes – their levies are usually lower, but they don’t necessarily have premium security.”

She says some of the most desirable areas for student accommodation in Cape Town are Rondebosch, Newlands, Rosebank, Mowbray and Claremont, as they are served by the Jammie Shuttle – UCT’s dedicated transport system. These suburbs are followed closely by Observatory and the City Bowl, due to their proximity to public transport, universities and colleges.

Kesting says that parents buying sectional title apartments need to be aware of several important documents relating to the complex. These include the latest annual general minutes, conduct rules of the scheme and any financial statements.

“Keep in mind that you are not just buying a unit – you are also buying into a sectional title scheme. Don’t get lost in the excitement of buying an apartment, ensure that you are well informed about the property and the scheme.”

She parents should start looking at options long before their children are ready to leave home for university.

“Consider looking a year in advance. Sellers become highly competitive and increase prices from as early late October and the trend continues through to February. Many parents are already buying properties and rent them out while their children are still at school. If their children don’t move into the property, the owners can still earn money by renting it out,” says Kesting.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    • 20 Jun 2018
      The average size of bond granted in SA has grown 7,7% in the past 12 months to R934 000, according to BetterBond, the country’s biggest bond originator.
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us