Why Investing in Property Close to Schools is a Good Idea
    • 14 July 2022

    Why Investing in Property Close to Schools is a Good Idea

    Investing in property close to schools can have a significant positive impact on occupancy rates, capital growth, and rental return for Australian investors. Schools are an essential community asset that rental families are willing to move close to in order to give their children the best education possible. Therefore, property investors should carefully consider the locations of local schools – especially those with a strong reputation for academic excellence – when building out their property portfolio.

    At Property Club, we help Australian property investors make informed decisions about where to invest. Because schools naturally appreciate the value of nearby properties, investors won’t regret purchasing in one of these catchments.

    Let us take a look at some recent numbers courtesy of the Australian Bureau of Statistics to see why schools should be high on the radar for property investors around the country.

    More Schools Means More Investment Opportunities Australia continues to gain more and more schools across its states and territories. There was an increase in both government and non-government schools in Australia from 2020 to 2021. Overall, there was a net increase of 39 schools across Australia during this time – 17 of which were government, with the other 22 being independent.

    This was in response to the 23,743 new students who started their education in this country, representing a 0.6% increase across the 12 months and bringing the total number of enrolled students to 4,030,717. In total, since 2017 there has been an overall increase of 4.7% in student enrolments across Australian schools.

    All of this points towards a growing demand for properties within school catchments that provide families with easy access to their nearest primary or secondary education provider. Investors should seriously consider purchasing properties that are suitable for family living and nearby their local school, as you will experience significant value appreciation over a short time span.

    Where to Invest? Just because Australia has seen an overall increase to schools and enrolments over recent years doesn’t mean that every state and territory has seen similar results. To make a more informed decision about which region to invest in for schools, here are all 8 Australian states/territories ranked by their annual student enrolment growth from 2020 to 2021:

    1. Australian Capital Territory: 1.5%
    2. Western Australia: 1.5%
    3. Queensland: 1.1%
    4. Victoria: 0.5%
    5. New South Wales: 0.2%
    6. South Australia: 0.2%
    7. Tasmania: -0.3%
    8. Northern Territory: -0.6%

    It is important to note that this ranking closely resembles the annual population growth in each region.

    When breaking down the type of schools that provide education for the most students, government schools have 2,622,755 enrolments, followed by Catholic schools with 787,181, and independent schools with 620,781. Despite being on the bottom of this list in terms of total enrolments, independent schools have actually experienced the largest increase over the past 5 years, with student growth at an impressive 11.4%.

    For our members, this information points towards a wealth of great investment opportunities throughout Australia. More and more families are going to need a place to live that is conveniently close to their local school, and the more renowned that school is, the higher the value of the property.

    Find Your Perfect Investment Property If you are a property investor looking to expand your investment portfolio into school catchments, then consider becoming a Property Club member today. Membership is free and will give you access to our nation-wide suite of resources and property mentors to help you on your investment journey. Contact the Club today by emailing us at enquiries@propertyclub.com.au.

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