Chil­dren in­flu­ence home-buy­ing

George Herald - Private Property - - Property News -

One of the de­cid­ing fac­tors that de­ter­mine whether your child will gain ad­mis­sion into a school is your res­i­den­tial ad­dress. So, it's not dif­fi­cult to un­der­stand why good par­ents fac­tor the needs of their chil­dren into their pur­chas­ing de­ci­sions. But ex­actly how much in­flu­ence are chil­dren hav­ing on their par­ents' pur­chas­ing de­ci­sions?

"There is no doubt that chil­dren play a vi­tal role in the home-buy­ing de­ci­sion, and rightly so. At the very least, buyers usu­ally con­sider ar­eas that are close to good schools (both pri­mary and high schools, de­pend­ing on the age of their chil­dren). Be­yond this, buyers with chil­dren also place less value on cer­tain fea­tures they thought im­por­tant be­fore they had chil­dren. For ex­am­ple, whether a home has scenic views be­comes less im­por­tant pro­vided the home is in the cor­rect sub­urb," says re­gional di­rec­tor and CEO of RE/MAX of South­ern

Africa, Adrian Goslett.

Mil­len­ni­als

While all of this might seem like old (and some­what ob­vi­ous) news, global stud­ies have shown that mil­len­nial par­ents are plac­ing increased value on their chil­dren when it comes to mak­ing pur­chases. A re­cent poll con­ducted in the US re­vealed that 55% of home­own­ers with a child un­der 18 said that the opin­ion of their child played a role in their home-buy­ing de­ci­sion. For mil­len­nial par­ents, the in­flu­ence grows to nearly 75%. Look­ing within our own con­ti­nent, a Nige­rian study con­ducted by Re­search Leap in 2015 re­vealed that most par­ents make pur­chas­ing de­ci­sions with their chil­dren at the cen­tre of their choices. Ac­cord­ing to the find­ings, "what their chil­dren want or like is the most im­por­tant cri­te­rion they con­sider when mak­ing the fi­nal de­ci­sion to buy."

Cau­tion

Goslett cau­tions mil­len­nial par­ents, though. "I would ad­vise mil­len­nial par­ents not to al­low them­selves to be too heav­ily in­flu­enced by their chil­dren's wants when con­sid­er­ing which prop­erty to pur­chase. While it is im­por­tant to con­sider your child's needs, their pref­er­ences can change weekly and you're go­ing to be pay­ing off your home loan for the next twenty to thirty years."

As a re­sult of par­ents fac­tor­ing their pur­chas­ing de­ci­sions around their chil­dren when search­ing for homes, buyers with chil­dren often tend to fac­tor their wish list around the num­ber of rooms as op­posed to the fin­ishes and fea­tures of a home. Ac­cord­ing to a study con­ducted in Potchef­stroom in 2016, the fea­tures of a home which buyers rated most im­por­tant var­ied vastly de­pend­ing on whether buyers had chil­dren or not. The re­sults re­vealed that fam­i­lies with chil­dren shared an em­pha­sis on the num­ber of bed­rooms, qual­ity of the kitchen, and the num­ber of bath­rooms a home had. For cou­ples with­out chil­dren and sin­gle buyers, the fo­cus was on se­cu­rity sys­tems, the ap­pear­ance of the house, qual­ity of built-in cup­boards, and the size of the garage and park­ing space.

"Un­sur­pris­ingly, the needs of a buyer with chil­dren will dif­fer from the needs of a buyer with­out. How­ever, it is in­ter­est­ing to see which fea­tures be­come less im­por­tant to buyers when they have chil­dren. My ad­vice to par­ents is to con­sider both the im­me­di­ate and long-term needs of their fam­ily when pur­chas­ing prop­erty. For ex­am­ple, while park­ing space might not be an is­sue when your chil­dren are young, it can be­come an is­sue when your chil­dren turn eighteen and pur­chase cars of their own," Goslett con­cludes.

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