Buying a House within The Zone of Good Public School Vs Sending Kids to a Private School

malkakas on 09/01/2018 - 13:29

Hello Ozbargainers,

I live in Adelaide and I have a two year old and another one is on the way in 6 months time.
We currently own a house (with a mortgage), but there are no good government schools (primary/high school) in our area (South West of Adelaide).
There are good private schools, but it will cost us nearly ~800,000 (~400,000 x 2) over next 20 years to send the kids to a private school (The cost estimate is from local news paper).

In Adelaide the Good Public schools are located in inner east and inner south suburbs and we can buy a house in the zone of good primary and high school from around $800,000 (or a unit for around $400,000) at current prices. For a 800,000 mortgage the total repayment is around 1,500,000 over 30 year term.

  1. If we stay where we are and send kids to private schools, after 20 years we'll end up with $800,000 out of pocket (and hopefully better educated kids).
  2. If we buy a property in "Good" public school zone (and rent out our current house), we may still have to spend around $200,000 ($100,000 x 2) for various schooling needs. But we will have the property as an asset (probably at least doubled in price over 20 years).

I am bit worried about buying as it will stretch our family income to the maximum.

What would be the most sensible thing to do.

Poll Options

  • 1
    Stay where you are and send the kids to private school.
  • 25
    Buy a house in public school zone and keep the existing house as an investment property.
  • 6
    Buy a house in public school zone and sell the existing house.
Financial

Comments

  • lupiter on 09/01/2018 - 13:50

    On 2, would the rent from your current property outweigh selling it and saving on the interest? What about as that changes?

    Also consider more than just school in the "nice" neighbourhoods. Activities? Shops? Public transport? Commute times?

    Unless your local Primary School is really shocking, I'd hold off shelling out the money for a private school until High School if you can. Or move when the kids make it to High School age.

    • malkakas on 09/01/2018 - 14:26

      If I rent out the current house it can easily get 400+ per week. The current monthly repayment is about $2000 (Principle+interest). inner south and east suburbs of adelaide are considered "all-inclusive/best" due to close proximity to CBD, Shops, parks etc.., and that is the cause of hefty price tag of 800K+.

  • [Deactivated] on 09/01/2018 - 13:59
    +4

    Consider the 'good' schools may change over time - A lot depends on the principal.

    • Quantumcat on 09/01/2018 - 14:12

      Very true, the public college I went to came second overall to a super posh grammar school in the year I was in Year 12 (and did so for a number of years), beating dozens of private and public high schools/colleges alike, but now (15-odd years later) it is a cesspool full of drugs

    • malkakas on 09/01/2018 - 14:40

      I agree, but I do not see any light of improvement in the public schools in my area. They contentiously perform well below average in NAPLAN and year 12 exam.

  • Quantumcat on 09/01/2018 - 14:09
    +1

    Is it an option to buy a little apartment in the good school zone and keep living where you are, but pretend the kids live in the apartment? Then you can air BnB it or rent it to recover some/most of the mortgage/strata/rates cost. This has the combined benefit of a) having an asset at the end, b) not having to move, c) if the schools you have your eye on change 'goodness' in the time between now and when you're ready to enrol them you haven't uprooted your family for nothing

    Also once you get the older kid in you can often get the younger one in out of area from the fact his/her sibling attends, so only have to pretend for one kid.

    • malkakas on 09/01/2018 - 14:41

      Thanks. This is a good option too.

  • hashtagbargain on 09/01/2018 - 14:27

    The cost of private schooling would blow up if a 3rd kid decided to come along. Buying in a decent suburb seems to be the best option here. The next best thing would be renting in the area you are after.

  • ShannonN on 09/01/2018 - 14:48
    +4

    There is nothing to say that by the time the kids are ready for high school there wont be more choices in your area, new school; may be built, principal and P & C may change for the better in existing schools ?

    Private schools are not the be all and end all re good and safe environments, less drug and sexting etc.

    Most private schools will have air con in classrooms unlike state schools but will expect you to purchase silly items like tablets or laptops for 6 yr olds so the teachers can sit back and let Google teach LOL

    I'd suggest don't worry about it right now the kids are not even close to school age. Primary school may not matter as much as secondary schools for the educational and environment issues you are trying to avoid now.

    Hold off till they go to high school, thus letting your house grow in value your mortgage reduce and then if the demographic re schools, education etc change from today you're in a better position to gauge your choices to move, stay choose public , private etc

    • 0FoxGiven on 09/01/2018 - 14:53
      +1

      Completely agree. I don't have kids of my own yet but I wouldn't consider sending any future kids to private till maybe after 5th grade.

  • Archi on 09/01/2018 - 16:40
    +1

    not all schools are the same..
    some public schools are better at academics whilst others have better facilities for sports and athletics and or creative arts.

    not all children are the same…
    placing your child in a school that doesn't provide the right support for their skill set is probably the worst thing you can do. understand what your child wants or needs in schooling and select a school based on their ability. your child may be academically inclined or may be athletically inclined and or maybe creative and artistically inclined.

  • jjjaar on 09/01/2018 - 17:48
    +2

    Re-selling the house in the good area when your kids are done at school will also be a benefit. New parents will be making the same decisions.

    In my area over the last 30 years the suburbs with the good public schools still have good public schools.

  • champ21 on 09/01/2018 - 18:20

    Private school doesnt guarentee a better education. Its mostly based on the type of people your child surrounds themselves with and the kids who go to the school. Private more expensive and yes they can network but kind of redundent if you are not on the same economic bracket as the others that go there. thats how i see it, a good public school does the same thing as a good private school they both end up at uni. focus on your childs well being and spend the time rather the money on bringing them up right.

  • wordplay on 09/01/2018 - 20:47

    which prive schools are you looking at that are going to cost $800,000? PAC, st peters ? there must be cheaper private school options.

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