select
|

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
  
2000
Characters remaining


    Latest Property News
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK