All parents want the best for their child and that includes getting a good education.
In many cases the top private schools are simply too expensive or hard to get into, so many parents try to get their kids into the best performing public schools in their area, however this often means that they need to live within its catchment boundaries.
Why this should matter to investors
Anything that is going to drive up the demand for particular properties is a worthy consideration for any investor. In some cases it may mean paying a premium of up to 20 per cent or more on a property, but the property will always have an eager list of tenants waiting to move in, plus it will attract higher rent.
The more popular a school zone the more it will drive up nearby property demand, and every area is likely to have a particular school that is on the local parents’ radar.
How to find popular schools
For those that don’t live in the area, or simply aren’t parents, it can be hard trying to figure out which schools are best. You can visit the MySchool website – www.myschool.edu.au – to find out specific details about individual schools and how they rank compared to others.
It’s also worth reading real estate listings to see whether or not they mention local school catchments, chances are that if a property description lists the school zone it’s in then it is a popular selling point for the property.
There are a few things you should consider when looking at investing within a popular school zone however:
- Possible catchment changes – School boundary lines can change over time and in most cases they get smaller. Buying close to the boundary can be risky as it might mean that you get pushed out of the zone in the future. To avoid this risk it’s best to buy as close to the school in question as possible.
- Parents are looking for family homes – If you’re buying to take advantage of a school zone then keep your tenants in mind. Most tenants in the area will be families so they will be looking for homes suitable for families. This means they will need more than one bedroom and will want amenities nearby for children such as parks and transport.
- Use timing to your advantage – Most parents will be looking to move before they need to enrol. Find out the enrolment dates for the school and offer the property around this time so that it is available when most families are looking to move to the area.
At the end of the day there are a number of things that influence property values, but it’s always worth considering catchment zones as buying in the right one can make for a very worthy investment.