Wednesday, June 9, 2010

JHB Student Accommodation Boom

12 May 2010

Property markets in Johannesburg areas such as Richmond, Auckland Park, Westdene, Braamfontein and even further afield in Yeoville and Rosettenville are straining to meet the demand for students' accommodation.

Servicing tertiary institutions, such as Wits and the University of Johannesburg (formally RAU and Wits Tecknikon), these areas are enjoying the spinoffs of expanding student populations says Brian Lovell of leading local agency Homenet Leaders.

"Factors such as a shortage of land for additional development and the influx of home offices and service industries to support demographics are also underpinning the market in these areas," he says.

"These are older suburbs but basically they are being re-invented in the process of becoming 'student city.' As a result, there is strong demand for apartments as well as houses that will accommodate students on a communal basis."

A case in point is the Calais complex in Montgomery Park, around the corner from the University of Johannesburg, which is comprised of about 200 one and two-bedroom apartments. "Five or six years ago, a one-bedroom unit in this complex would have sold for about R130 000 and a two-bedroom version for R180 000. Today they are fetching around R380 000 and R480 000 respectively."

In fact, prices for student type-accommodation in this part of the city have generally doubled in the past three years, despite a spate of purpose-built new development, and expectations are that they will continue to escalate, although perhaps more slowly now that the University of Johannesburg is rumoured to have plans of its own for building rentable student accommodation in Melville.

Says Lovell: "The rationale for investing in flats or larger homes to house students is inescapable. Parents will have to pay for student accommodation whether they own it or not. It simply makes good business sense to direct those resources into something that will, in all likelihood, provide a financial return at the end of the students study period.

"And the returns have been excellent, although they may be leveling off to some extent, perhaps for no other reason than that the banks will not continue ad infinitum to provide financing where they cannot see endless increases in values.

"Having said that however, once the property market in general resumes its strong growth, as is generally anticipated, so too will student-orientated properties and for the investor with a medium to long term view, that means an excellent opportunity."

Tuesday, June 8, 2010

Student Accommodation - Things to be taken care of!

People who like to invest in property are considered to have an edge over others. The phenomenal success brought forward by real estate sector has once again proved that property continues to earn even you are not working. We have realized it for our own benefit that world is becoming more of a single country and people are moving freely all the time to different places and students in particular. Student accommodation concept has reached unprecedented heights and more emphases are being laid as how to make it evergreen like any other industry. Student accommodation concept would always be there as long as we have educational institutions and universities offering overseas programs.

There are few things to take care of when one is putting his or her property on the market for student accommodation. First things first and one shall think of taking professional services. The easiest way out is to appoint a managing agency and let them take care of things in order. The best part is that you need to be bothered about the technical aspect and how to find suitable candidates for student accommodation. These professionals are equipped with sufficient amount of techniques to put your interests forth than any other thing. 'Joint and several liability" clause is another such term that ensures peace of mind to owners as he or she has not to run after every single tenant but a fixed amount would be set as a whole. Now, all tenants would be responsible individually or collectively to pay it on monthly basis.

Another important thing to be mentioned over here is that to involve parent's participation. It is the single most influential factor before striking the deal. It is good to have fair expectations from each other. All such and more measures are meant to decrease the ratio of failed cases and bring hope and light to this industry. Student accommodation prospect is vast in nature and certainly future belongs to it. Be it students or the owner, student accommodation agreement shall serve both the sides. At the end, we are talking about students who would eventually pay for the services and landlords are supposed to provide basic facilities.

So, things should be in tandem and work accordingly. The last bit is about the number of people who are going to accommodate as it is again a debatable issue. It is always good to clear the doubts first and then walk together peacefully. Student accommodation is an interesting discussion to have as it is still relatively new and progressive in nature. So, better are chances our when we talk more and participate hugely in numbers. The only way to succeed is by asking more and after.

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Student Accommodation helping the real estate market

The term student accommodation has been referred to the requirement of students wanting to pursue higher education and seeking a place to settle down in the main cities where such education is available. Many leave their homes in the hinterland and make their way into the main cities where they know the standards of education are much better. Many foreign students also make their way into cities that are known to provide good higher education standards are therefore require help in the form of student accommodation.

The trend is now very clear. Many individuals are pursuing higher education and are willing to relocate which is leading to this requirement. The captive accommodation already available with the universities and educational institutions are proving to be insufficient to hold so many students and they have no choice but to look elsewhere in the city. While some of the students do manage to shack up with seniors, others have to look for student accommodation facilities.

This demand for student accommodation has led to the creation of student areas in some of the towns. These are typically lodgings of low rent, are near to the education institutions and city centre and are within striking distance of leisure facilities such as gymnasiums, pubs, cinemas and sports clubs. These areas are often not fancied by their neighborhoods, due to negative experiences in the past with some of the students who may not have followed the discipline and good manners that are required when you stay close to civilian neighborhoods. Very often students have indulged in vandalism and rioting as a form of protest. Some of the students have also been involved in drug trafficking, prostitution and other anti social activities leading to a lack of confidence and faith in them. On other factor for this apathy is the poor upkeep of the facilities thanks to the changing nature of the residents each year.

There are such student areas in almost all major cities that provide good standards of higher education. The only positive point for residents close to such student accommodation areas is the fact that this demand for housing has led to a spurt in the real estate prices, contrary to perception. The demand from students is so strong for good housing that they are willing to pay a higher price for the accommodation. This has led some smart landlords looking to rent out their property to brand them as "student houses" in their advertisement so that they are able to attract the right student population for their property and rake in the spoils.

Some cities are however making attempts to provide a much better standard of student accommodation by providing some luxury electronic gadgets so that they can get the students to move in there. They know that students can pay more thanks to the high level of disposal income they have with them due to high student grants and loans.

The Leeds Metropolitan University is the largest university and students flock to this university for their higher studies. They find Student Accommodation Leeds with assistance from Letting agents Leeds for this purpose.

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