The data released by the University of Cambridge on 30 January 2025 shows that Shenzhen International Exchange College has harvested a total of 41 Oxford and Cambridge pre-acceptance letters (33 for Cambridge and 8 for Oxford), ranking first in the country. For the families who have obtained the admission qualification, how to realise the efficient allocation of funds has become the core issue against the background of the annual average of 550,000 RMB (tuition fee of 400,000 RMB + rent of 150,000 RMB) and the four-year cumulative education expenditure of more than 2.2 million RMB.
The strategy of 「housing for education」is becoming a new option for high net worth families to optimise their education investment.
The「housing for education」strategy achieves three objectives through property purchase:
1. Hedging of housing costs: either directly eliminating rental costs through owner-occupation or covering Oxford/Cambridge rental costs through renting out a London property.
2. Asset appreciation potential: utilising the long-term appreciation of London property to offset some of the cost of education.
3. Exit flexibility: continue to collect rents or sell for cash after completion of studies
Core benefits of London property
1. Property Investment and Rental Income
Parents who buy a property for their children in London can rent it out and get a stable rental income, which in turn can subsidise or even cover the cost of renting a room for their children in Oxford/Cambridge. Compared to Oxford/Cambridge, the demand for renting in London is much stronger and the rental income is much more considerable.
2. Lower study costs
Compared to long-term rental, buying a London property can probably cover the rental expenses of Oxford or Cambridge, and offset part of the cost of education and living through ‘housing appreciation + rent overflow’.
3. Long-term asset appreciation
The London property market has always been regarded as one of the stable investment choices, especially in prime locations with rich educational resources. Over time, the potential for property appreciation is high, which not only builds up assets for the family, but also provides financial security for the children's future.
4. Flexible exit mechanism
After the children have completed their studies, parents can choose to continue to rent out the property for income, or sell the property at a profit.
In short, parents can realise ‘education, residence and asset allocation’ through this operation.
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