What's the difference between sending your child to a private school and buying an expensive house in a top enrolment zone?
About $300,000 to just under $500,000 if you listen to the experts.
Bayleys and the Real Estate Institute of New Zealand released data in early 2015, calculating that families could save up to $380,000 by buying a house outside of the top Auckland secondary schools enrolment zones.
Analysis of two years' property values in Auckland suburbs within catchment zones of the top state secondary schools (Auckland, Mount Albert and Epsom Girls' Grammar schools, Westlake Boys High School and Macleans College) found parents were markedly better off financially buying out-of-zone in the same neighbourhood and sending their children to private schools.
Bayleys found that, in the same street, in-zone houses were up to $272,000 more expensive than comparable properties not in-zone; over the life of a 20-year mortgage, at a fixed mortgage rate of 6.5 per cent, they calculated that extra $272,000 equated to a total outlay of just under $490,000.
Clarence van der Wel, the chief operating officer for the Academic Colleges Group of independent schools, was not surprised at the hard numbers.
With secondary school fees at ACG schools ranging from $16,725 to $19,380, parents would pay some $100,000 over a five-year period (years 9-13).
"People often believe private school is beyond their means but in fact it is not, compared to servicing a mortgage," he points out.
"Some people might think 'race for a zone' is the same as the 'race for a good education', with some families making that decision many years before the children started that [secondary] school. Most parents believe some schools are better than others - but private schools are a good option because you do not need to live in a zone. It doesn't matter where you live."
He says ACG schools are deliberately spread around Auckland central (Parnell and central business district), south (Strathallan) and west (Sunderland),as well as the growing Tauranga market, so families can choose to live in more modest suburbs and focus their funds on their children's education, rather than servicing the steep mortgage of an elite zone.
James Wilson, northern manager of QVHomevalue confirms that 18 months later, the zone vs fees numbers still hold true.
"Anecdotal evidence suggests that the premium remains in the vicinity of the $250,000 - $300,000 mark [although] that varies significantly, depending on the nature and locality of the property," he says.
While it is too early to assess the effect of any increases in house numbers brought about by the proposed Auckland Unitary Plan, he points out school zone boundaries and intake rules can be altered.
"Purchasers who intend to pay significant premiums for the sole right to be 'within zone' need to consider this. We would also urge purchasers...to make the appropriate zone checks themselves and not simply take somebody's word that a property is 'in zone'. There have been numerous examples of people getting caught out by this in the past."
ACG's van der Wel points out that there are more than just numbers at stake. He says the nature of independent schools makes them much more service-oriented, with focus on nurturing the child's educational and emotional needs.
"It's much more than exam results, it's about the all-round development of the child," he says. "They achieve their potential academically but also develop friendships, good social practices in those critical years for young people."
He says the nurturing environment of a private school means a child is not "lost in the crowd". His group's philosophy is centred on teacher quality - spending time with each child to support individual learning, so that they understand a subject or topic, not just scratch the surface.
The schools run extended lessons to ensure each student gets the attention they need. Research has found a quality teacher motivates student achievement so the ACG group focuses on teacher recruitment and professional development.
The 300 teachers can combine resources and are supported by a central appraisal system, annual group conferences and management determined to keep them at the top of their game.
"Most people want a good education for their children," says van der Wel. "I would challenge people to think about their perception of quality. It's a question of finding the right fit, and making the choice to buy into a more modest lifestyle and still send their child to a high quality private school."
