Can good schools really boost property prices?
One question that often perplexes many buyers is the value that should be placed on a home in the catchment area of a good school.
How much extra should you expect to spend simply because good schools are on your doorstep? Is it worth $20,000 or even $50,000?
Of course, if you don’t have a young family, then the value would certainly diminish. But for buyers who have young children this is an important question.
In New Zealand, there’s clear evidence homes and apartments close to schools with a good reputation will command a premium price.
The area of Remuera in Auckland is well-known as a double grammar school zone that attracts a high degree of buyer interest.
Christchurch has a similar story, with buyers seeking to buy around Cashmere, Merivale and Fendalton.
Location is one of the most valuable facets of real estate, so it has to play into your thinking when considering how much to pay for a property. And while nearby schools may be of no interest to you personally, your proximity can work well in terms of investment.
These key location issues may help you consider a suitable property.
Your lifestyle
Enjoying your next home will likely be influenced by its location and the amenities that suit your work and lifestyle choices. This consideration should be at the top of your list when searching for property.
Resale value
With so much money on the line, you must be confident you’ll purchase in an area with a track record of growing property values. Real estate is a great way to build wealth, so research diligently.
Commute question
Buyers often have to compromise when finding a desirable location and minimising commute times. If your travel time is too long, it will become tiring, and you may have buyer’s remorse and want to move again.
Local economy
There will always be a demand for property in areas with employment opportunities.
Amenities access
Nearby schools, shopping centres and healthcare facilities enhance any property’s desirability.
Safety and crime
If you have doubts, check with authorities about the local crime rate to ensure your family is safe and problems won’t impede the value growth of your property.
Future developments
Consider the potential of the area. Development plans often drive prices higher, signalling a good investment on your part. However, apartment prices can be adversely affected if significant developments are planned or included in zonal planning guidance.
Let’s discuss your home selling strategy.
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