Buying for our ‘future’ children… literally

We are used to reading articles on the importance of buying property for our children’s future. This is because when they are adults, they will likely be able to afford only a very small sized home or one that is very far away from us.

Therefore, one reason why parents buy for their children is so their kids can afford to stay in a place not so far away from them.

They also buy property so that when their kids require funds to further their studies, the property can be sold and the money used for their education.

In one particular advanced country, it is reported that some parents buy property even before they have children – yes, they are buying property for “future” children.

The reason? They want their children to have the best quality of education.

In an article in news.com.au entitled “Childless buyers line up for sought-after school zone”, it was reported that young couples in Brisbane feel that education is important.

As such, they are willing to fork out money to ensure their children get the best quality of education possible. Many buyers are weighing the costs of private school fees and the mortgage of properties in the area of well performing schools.

Here, public school fees are only $110 a year whereas it can go up to $30,000 for private schools.

Thus, many parents are buying properties in school catchment areas to future-proof their children’s education.

The article quoted a parent, Paul Lynch who said that when he bought a home in 2007, his main concern was that the property be located within a $5 cab ride of Brisbane’s CBD.

With that in mind, he and his wife opted for a low-maintenance lifestyle in a four-bedroom apartment in West End so they could still be within the school catchment area.

It was his opinion that this was the main reason why people desperately wanted to live in the school catchment area.

Actually, this is already something which parents in Malaysia are doing, except that most are only doing this after they have kids.

A friend moved to Sri Damansara so that her kids could go to a nursery within walking distance from her house and a primary school of her choice less than five minutes away.

The cost of that terrace home was just RM1 million, plus a few hundred thousand for renovation.

Kids are the future of all the investments we make today, whether it’s for them or due to them.

Think about it. We want our kids to grow up healthy and strong but we do not currently live in a place where they have the space to run around every day.

This article first appeared in kopiandproperty.com

Charles Tan blogs at property investment site kopiandproperty. He dislikes property speculators and disagrees that renting is better than buying. He thinks it’s either property or poverty. He is presently the CEO of an auction house auctioning assets beyond just properties.