Andrew Bell’s Market Update: How School Zones Can Boost Property Value
Issue 8 | April 13th, 2017 | How School Zones Can Boost Property Value
Firstly, this editions video is filmed from a home that I would have to rate as one of the best I have ever seen and could arguably be rated as Australia’s best golf front residence. It is 2218 The Masters Enclave, Sanctuary Cove. It is breathtaking, not only in its design, but the settings and the suburb finishes of the home.
Check out the property video here:
Contact Matt Gates 0404 444 439 or firstname.lastname@example.org – Ray White Sanctuary Cove
THE SPIT DEVELOPMENT – YOUR FEEDBACK
I’d like to thank those who provided feedback to my last news commentary regarding the proposed development at the Spit. I was really surprised by the feedback. A mix between those who disagreed, Shaun said it was “Bad idea. 100%” and those who agreed. Many people responded as though it was about the cruise terminal -it wasn’t. What was noted was the strong support for a development, very strong opposition to it being out in the ocean. Whilst David thought “I firmly believe that this development is the best thing for the Gold Coast, by providing great employment opportunities at a time when we need them most”.
Many people responded as though it was about the cruise terminal -it wasn’t. What was noted was the strong support for a development, very strong opposition to it being out in the ocean. Whilst David thought “I firmly believe that this development is the best thing for the Gold Coast, by providing great employment opportunities at a time when we need them most”.
People still believe it should be somewhere within the Broadwater. In relation to the proposed ASF Spit development, there was strong opposition from those around Main Beach, and close proximity, whilst the broader Gold Coast region showed enormous support. I guess anyone would understand those closest to it might feel more impact. Whatever the case, my intention was to try and get everybody to have an opinion and express it to our local government authorities so we can get a real consensus of what the broader Gold Coast community feel.
HOW DO SCHOOL ZONES AFFECT REAL ESTATE?
Let’s look into a little-known aspect of what can drive property values in certain areas, and that is school catchment zones. Whether you have children or not, if you have invested interest in real estate, it is something you should know.
Each school has a catchment zone, which is a geographic area that defines where students need to live in order to be guaranteed admission. It is amazing how some of these catchment zones actually slice a street in half or take one side of the street and not the other. For families with school-aged children, buying a home is often about finding a property in a neighbourhood which guarantees a place at a local top performing high school. Families are often willing to pay a premium to live within the right catchment zone if it means their children are automatically admitted to a specific school.
Social researcher Mark McCrindle, from McCrindle Research, says the rising cost of private education has led to parents targeting certain areas in order to have their child admitted to a top performing high school.
Research has shown a range of results, and that has something to do with the quality of the actual school, however, research has certainly shown that the catchment zone effect can vary from between 5% and 20% when it comes to price. What tends to happen is that owner occupiers are buying in these zones and they tend to be a bit more emotional and pay a premium. Often they will pay whatever they have to pay to get their kids into the schools that they want and so it does drive values higher. Even those without children, it is nice to be living in a suburb where there is this very dominate factor that adds to growth in property values.
Real estate Industry of Victoria data shows that homes located within catchment areas of Melbourne’s best public schools are fetching close to $600,000 more than homes outside the catchment area. That is a $600,000 premium.
TIP: BE CAUTIOUS + DO YOUR RESEARCH!
A little word of caution – parents will need to be very careful to ensure that when they are buying for the purchase of getting into a specific school, that they check and double check the property is within the boundaries of the chosen school catchment zone. They also need to be aware that those catchments can change and not to assume that what they have researched this year applies necessarily to the next year.
A clear message to you all, whether you have school children or not, is that with the cost of private schools education going up so dramatically and more people turning to the public school system, these catchment areas around great Government schools, whilst more expensive than outside the catchment zone, not only provides you access to a great school but also above average capital growth in value.
The weather forecast for this Easter is fantastic and with it being one of the peak periods for interstate visitors we certainly expect to see a flurry of activity in the real estate market. If you are interstate and coming this way, there are some restrictions; where for example it is illegal for our industry to work on Good Friday, and with high occupancy, it is often difficult to get into the holiday let apartments. As such give us a call in advance so we can make a time to explore your buying interest. You can simply contact us by return email or by our 1800 798 009.
I trust all is well in your life and I look forward to catching up with you in a fortnight’s time.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group