- Posted 10 May
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If you are a parent with young children, you know the school they attend can make a huge impact on their lives. School information is important to families looking into home buying, and 31 per cent of respondents in a recent survey said that local schools are an important part of their purchasing decision.
Most real estate listings include information about nearby schools, and some sites let you search for properties based on their location to a particular school you have in mind. Here are some of the pros and cons of choosing a home close to a top school.
Considerations before buying
The biggest factor in buying near a desired school is that your home loan will probably be higher. It’s not surprising that estate agents note a price increase for properties near high performing schools.
If you want to live near a great school, you’ll likely pay tens of thousands more for the privilege. For instance, a home near St. George Girls High School in Sydney can cost $50,000 more than a comparable home in another part of the city.
You’ll also want to explore the fit between your children and a particular school. Depending on academic requirements and teaching styles, some schools will be better suited than others to meeting your family needs. Visit the school and meet with teachers and administrators when possible before making a home buying decision.
One possible financial downside is that just because a school is well regarded and sought after now, there is no guarantee that the school will remain excellent in the future. If you’ve paid a premium for the location and the school later declines or closes, it may be tough to get the full value back when you sell. This is more of a concern if you plan to stay in a home very long term, but at that point other changing factors in the neighbourhood will also influence home value.
The upside of buying near a great school
Obviously the decision is more than just a financial one. If you have children who will reap the benefits of attending a top ranking school, it can be well worth the extra money you’ll spend on your mortgage.
But just looking at the financial aspect, is it a good investment to buy near a particular school? These homes tend to hold their value well, so when it comes time to sell you’ll be able to recoup your investment. And because of the desirable location, if you decide to become a landlord and rent out your home, properties near high performing schools can fetch a 10 per cent higher rental rate.
Whether this is your first experience in home buying or you need a larger space for your expanding family, you’ll want to explore school options as part of your property research. Changing schools is a big event in a child’s life, so it’s important to find a home you can afford that is near good schools that meet your family needs.
Are you planning a move in the near future? Is the quality of nearby schools a major factor in your buying decision? Contact us today. We can help you get the right mortgage for the home you desire and deserve.