The wise decision of investing near in demand schools
Research into families with two adults and two children, indicates that proximity to schools is the single most important factor to consider when searching for a home. Particular schools are in greater demand than others, so investing within in demand school catchments is a very clever investment. We investigate why school catchment zones should factor into your investment strategy.
Strong rental demand
Public schools in Australia have defined enrolment areas based on geographic proximity – called school catchment zones. As such, children can only go to a particular public school if they live in the area.
As an investor, purchasing a property within in demand school catchment zones is guaranteed to attract tenants looking to send their children to particular schools as well as live conveniently close to their children’s schools. There will always be strong demand as people look for easy access to this important family feature, even more so if the school is in demand. Some families will rent a home specifically to allow their children to be accepted to a favoured school if their current residence is not within the catchment zone.
High quality tenants
If your property is within 15 minute walk to schools, transport, shops and leisure, you are likely to attract long-term, stable, family tenancies. Families with school-aged children are unlikely to move often. Once the children are settled, it is not ideal to move them around disrupting their routine for getting to school, seeing friends, participating in local sport and so on. Having long-term, quality tenants are ideal for any investor due to their steady income stream, minimising potential loss of rent periods.
The research is done for you
For investors, buying close to a school can have a positive impact both on rental returns and future capital growth. We know this because the planning of new schools is a good way to check where the experts anticipate that population growth is going to take place. Schools are an expensive investment and often require further surrounding infrastructure.
Figures released by Domain in their 2015 school zone report, suggest that property prices for homes within in demand school catchment zones have increased significantly over the past year. The report shows that some Sydney prices rose by more than 50 percent.
Purchasing within in demand school catchment zones, while a wise decision, is just one piece of a property investment puzzle. To discuss your property investment options, contact CPS Property today.
