Yes, it is that time of the year where parents should start to think about where their children will live when they finally set off to university, and the ideal time for investors to benefit from student housing. Student housing is as important as what and where your child will study one day. There are so many factors to consider and every person wants the best for their children.
One of the areas synonymous with students and student life is the city of Bloemfontein, which hosts two of the top universities in the country namely University of the Free State (UFS) as well as the Central University of Technology (CUT).
According to Fritz König, Team Leader of Engel & Völkers Bloemfontein, the CUT students live mainly in the Willows, which has over the years become predominantly a student area and many families have moved out. “Prices range from R700 000 to R799 000 for an apartment, and for a student house, prices range between R1,6 to R2,8 million.”
“Investors have to make sure that the returns make it worth their while and need to factor in the levies, maintenance, and vacancy factors in their pricing”, Fritz added.
Another area that is very well known for its university is Potchefstroom. Carl Venter, Managing Director of Engel & Völkers Potchefstroom, noted that rentals charged on modern, well finished apartments in prime locations range from R3 300 for a one bedroom flat, and student units are 100% occupied, which means investors enjoy capital growth as new buyers and tenants come to the city annually. The North West University, or Pukke as it is better known, receives thousands of new students each year and not only from surrounding areas but from all over the country. There are even some students that come all the way from the Western Cape to study at this university.
“Developments that we are currently busy with include Carmen, Ivy League, L’Attitude, Sederboom, The Lofts, Vinkel & Koljander, Mooizicht Manor, De Reitz and Botanika. Carmen will be ready for occupation at the end of 2012 which makes this the perfect investment, and Ivy League will be completed at the end of 2013”, Carl added.
In areas such as Port Elizabeth and Stellenbosch student homes are also some of the biggest sellers. Both areas boast well known universities, namely the University of Stellenbosch and the Nelson Mandela Metropolitan University in Port Elizabeth. Studies show that there is a lack of student housing in both areas, so if you are planning on buying for your children, you would have to act now.
This is now the time to start looking at accommodation if your child is leaving school at the end of this year, or even if they are leaving at the end of next year. Student accommodation is a necessity and some areas do lack in developments like these. Yet if you act now you could still get the best for your child at the best possible price.
This article “Investing In Student Homes” was issued by Engel & Völkers Southern Africa.