Dunedin for student flats

[whirly]

Thanks for your excellent replies. The consensus of all of this seems to be that my daughter would be better off renting for a few reasons. I agree that the first year in a hall of residence would be a good start but after that its either of to partyville or paying a landlord top dollar to live somewhere conducive to studying and starting off adult life, establishing good networks and relationships etc. Time will tell but I don't think she's going to be part of the party-animal scene.

Yes I have concerns about her dealing with the responsibility but if it was getting to her I could perhaps get a property manager. (obviously this factor would have to be accounted for before making the investment).

You have to find flatmates you can live with regardless of whether you rent or own the flat anyway so hopefully she will fall in with the right crowd.

A few of you have also led me to some very good resources regarding property investment in general, thank you. Whatever happens if I am to purchase an investment property anywhere then its stuff I need to know.

On that I will leave my next question for a separate post.

cheers

W

[whirly]

Rent a place in Dunedin, and invest in something better to own than a student flat in Dunedin.

So...whats a better to own than a student flat in Dunedin?

[fungus pudding]

So...whats a better to own than a student flat in Dunedin?

There are quite a few commercial property deals around. Proportional titles are syndicates, and returning around 10% cash - paid monthly with usual tax deferred, and an investment of $50,000 usually, although some are $100,000. Buy a mixture of these and generate a real income. Better still are listed property trusts which are currently being given away. They are all PIEs so that's a big advantage if you are a 39% taxpayer. e.g. Goodman property trust is returning 12.5% after tax. Difference is that you can generate the equivalent of a wage for around 400,000 with these things, remembering the tax advantages. That's not possible in residential stuff, and certainly not in the Dunedin student market.

[Dr_Who]

Never rent to students. If you have to rent to them, better to rent to the medical, pharmacy, science students. Dont rent to engineering, commerce, law students. Talking from experience as a landlord.

[Billy Boy]

I put three boys though Otago uni.
All started with a hall of residence for the first year.
Then went flatting.
The advantage with H-o-R in year one is they make their own group of
friends. This group will generally stick togeather all the way through uni.
Get their own flat etc. My kids still keep their groups togeather. Did
their O,E's as one etc. Even give free advice etc to one another.
Lawers, Accounts, I.T's, so on. I have no regrets in that respect and
it's how I would do it again.
Whirly...Buy a house if you must but do it in the second year and it
does not need to be on Campus as your kids will have that sort
of crap aged out buy then. Or they will know what they want..?
I am pleased I did not buy a house as my kids went their (3) own ways.
Two have Hon's Deg's in science & the other is a well known animator.
Cheers BB

[lissica]

Maybe consider the lower part of North East Valley, as out of the main campus, but still lots of students, supermarket etc, good bus connections, walking distance and a bit cheaper.

You've only got 4 years to prepare yourself......

North East Valley is great...a bit of a longer walk but most students don't mind. We chose to flat there as students because the flats tend to be a bit nicer and quieter than the main student ghetto (Leith, Castle, Dundas Streets spring to mind). The houses in those streets are awful.

Never rent to students. If you have to rent to them, better to rent to the medical, pharmacy, science students. Dont rent to engineering, commerce, law students. Talking from experience as a landlord.

From my experience...it was the Arts and Science students who had the worst flats. Med Students...most of us were pretty tidy!

Agree with above comments about Halls of Residence...it's a great experience for first years and they miss out if they go flatting directly.

[Yossarian]

I wouldn't buy one.

I went to Otago for 5 years, finishing in '98. I lived in some right dumps, and the landlords just didn't care. You need to have that mindset to own student flats.

Also more importantly, your daughter will resent you for it. Give her her freedom, let her have fun, don't get involved.

Halls of Residence are ok - I did it for my first year and made a few good friendships. Certainly for 'freshers' they are not a bad idea to 'orient' yourself to dunedin and university more generally. But never never never go back for a second or third year. I knew one guy who was in the Hall for 5 full years (his entire tenure in Otago)... I'm sorry, that's just plain sad. That said, he now makes close to a million a year.... hmmm.....