The provision of Government infrastructure, proximity to the CBD and lifestyle amenities and access to public transport are key factors that go into identifying potential areas to invest in the property market. One of the other most powerful drivers of property price growth, however, is school catchments. Often in built-up areas with limited ability to add new housing stock, homes in top school catchments have the potential to experience rapid capital growth.
A recent report by Matusik Property Insights used Brisbane median house prices as an example to demonstrate the power of buying in top school catchments. The table below compares the 2013 and 2018 median house prices in Brisbane between the whole region, top 10 school suburbs and top 50 suburbs. As detailed below, median house prices grew faster in the top 10 school suburbs at a rate of 34.3%. Compared to a growth rate of 20.4% across Brisbane and 27.6% for the top 50 school suburbs in Brisbane, it’s clear that top school catchments can be a powerful driver of capital growth.
For families who prefer their children to be educated at public schools, living within the school catchment is vital to ensure they have a place in a good school without the price tag of private schooling in capital cities. When you’re investing in top school catchments, you need to ensure the property address is within the school catchment and established boundaries. For example, just because a property is within the suburb where a top school is located, it may be outside the catchment, so check the catchment boundaries carefully.
Perhaps the most powerful lesson that comes from Matusik Property Insights’ data is the fact that buying in a top 10 school suburb, in Brisbane for example, could net you an extra $100,00 of capital value in your portfolio. With this additional value, you could have the borrowing power to add another property to your portfolio and use it to secure finance for other ventures such as a new business or commercial property.
This scenario isn’t just applicable to Brisbane, especially with the city being less built-up than Melbourne and Sydney. To get started with this strategy, make sure you do your research and consult your legal and financial advisors to make sure it fits with your broader financial position.