The school factor - why buying near good schools is a safe investment
January 6, 2014 / Written by Rich Harvey
Whether you're purely in it for the money or want to make sure that your family home offers a return beyond just housing, figuring out where to buy property in Australia often comes down to surroundings, or, more accurately, what amenities can be found near a home.
While everything from popular bars and restaurants to supermarkets and public transportation can make a difference, one of the perennial favourites for property buyers is scooping up real estate near a good school.
Good schools help property values
Some things never go out of style, and parents wanting to give their children a top education sits safely on that list. For this reason, property values near good schools are often higher than the average for a given area.
This not only means a higher return for investors, it represents a safe investment opportunity, as regardless of how the market performs, real estate near a highly sought after amenity like a good school will retain value.
Of course, buying property near a good school offers another benefit. If you live in the home, you will be able to guarantee your children access to high quality education.
Weighing pros and cons
Property buyers should be aware that the inherent value of real estate near good schools means it will likely be more expensive to purchase in the first place. While this may discourage some buyers, it's important to weigh the pros and cons.
If the goal is a quick turnaround, there may be better options on the market. However, if long-term capital growth and attracting potential renters are goals, buying property near top schools is among the best decisions an investor could make.