One of the biggest decisions for a parent is deciding which school their children will one day attend. Some start researching their children’s education institutions from birth – or even before. The competition for space in good schools is increasing every year, so much so that some parents are on the waiting list before they even fall pregnant.
“There is a tremendous demand for homes close to good schools or universities, as properties in these zones tend to hold their value much better in tough economic times. Buyers that have kids will often migrate and be drawn to these areas and are likely prepared to pay a premium for these properties” says Craig Hutchison, CEO Engel & Völkers Southern Africa.
Education zones have also become a popular consideration for many people who don’t have kids as they will purchase property as a buy-to-let investment option. Investing in a school / varsity district will mean that the properties are easy to rent out. This high demand yields a higher rental income, and the rental periods are usually longer as the families will most likely wish for their child to complete their schooling career before relocating. “Interest in student housing has become increasingly popular over the years with the demand growing more and more as urban areas extend to, what used to be, outlying areas and travelling becomes ever more difficult with relation to fuel prices and transport costs” Craig notes.
Buying a house is usually for the long haul, so having an education institution in your neighbourhood can boost your property’s value. However it is important that you understand with the many benefits, there come some nuisances that cannot be avoided. We take a look at some of the benefits as well as the possible negatives of owning property in an education zone:
“It is always worthwhile exploring ones options. Speak to an area specialist, who will be able to advise you on past area trends and statistics, as well as assist with predicting what the market could be doing in the next few years” Craig advised. Remember that this is your largest asset, and you need to ensure you make the right choice.