Published at: 8/26/2016 10:34:16 AM
Buying in a suburb with quality schools can deliver big rewards.
Whether you loved or loathed your school years, it’s worth taking a ‘back to school’ approach when you’re relocating to a new home or suburb.
Industry research shows parents are often willing to pay a premium to be near the school of their choice, and it doesn’t have to be a private school to push prices up.
Price premiums up to $50,000
In the south of Sydney for instance, homes close to academically selective St George Girls High School may command up to $50,000 more than similar properties outside the college’s footprint.
Such is the demand for homes near schools with a glowing report card, parents will even pay a higher rent in catchment areas. Apparently, parents are paying up to 10 per cent more in rents to live in the catchment of champion sporting pipeline Westfield Sports High (whose alumni includes Australian cricket captain Michael Clarke) in Sydney’s south west.
It’s a similar story around the country. The bottom line is that a good school can be a key drawcard that attracts buyers, and tenants, to the neighbouring suburbs.
Potential for strong capital growth
On one hand, the popularity of quality schools may mean you pay a premium to buy into a particular suburb. On the flipside, as competition for places in reputable schools intensifies, homeowners in catchment areas stand to reap the benefits of firmer property values over time.
Just as importantly, for families with children being close to the school that’s best for their youngster is all part of the relocation decision.
Checking how local schools rate
The reputation of a suburb’s schools is certainly something to consider if you’re preparing to relocate, and websites like myschool.com.au, which keep tabs on the academic results of various schools, offers a handy guide of schools and catchment areas that are achieving top results.
Raine & Horne media release: Proximity to a good school can bump up a property’s price tag by $50,000, 21 January 2015.