Bathrooms and Primary School Zones Significantly Driving Real Estate Prices

By Janet Spencer

We always hear that kitchens sell homes, but with new data from the REIV we are finding that bathrooms and school proximity mean buyers will pay more for a property.

When it comes to the value of a second bathroom, it can add significantly to the final sale price of a home.  In Victoria’s Stonnington council as an example, the house median of a home with two bathrooms was $312,000 higher than a home with only one.  Second bathrooms tend to be sought after by buyers in more premium real estate in particular in the inner-city areas.  The convenience of a second bathroom, especially for families is worth the premium for many buyers.

And it’s not just in the sales market that the extra bathroom adds value, investors are also seeing higher rental returns as well.  Two bathrooms in a rental property widens the market demand driving rent higher.

Source: REIV 2017

What drives values even more than a second bathroom? A top-notch primary public school zone.  While high ranking secondary school zones have been increasing real estate values for years, primary schools are now proving to be equally as important for families with children. New REIV data has recently been released showing that homes in top performing primary school districts can be up to half a million dollars more expensive than homes outside of these zones.  In Melbourne, the South Yarra Primary School zone fetched a median house price difference of $565,000 from the bordering school catchments.  REIV President, Joseph Walton explained “while rather than paying private school fees, parents of school-aged children are looking to invest that money in the family home, buying into areas zoned for some of the city’s best public primary and secondary schools.”

The education hot spots in Victoria are:

Source: REIV 2017

So what does this mean for home owners, investors and those looking to get into the property market?

If you’re looking for a home to live in and don’t have school aged children, it may be wise to avoid homes in premium school zones. Why pay for amenities you won’t use?  If you do have children and the public school zone does matter to you, be prepared to pay more for your property or consider private schools and do the maths on tuition to see what’s more affordable and a better use of your hard earned money.

If you’re looking to invest, perhaps the smartest move would be to buy a property with one bathroom, but with scope to renovate and add a second, instantly increasing your investment’s value.  Look for properties where this would be possible to do at a reasonable short term cost.

At Buyer Solutions we buy well and buy smart for our clients.  Adding value as well as good capital growth can be a double positive for our clients.

For independent advice on buying or selling real estate, contact Janet Spencer at Buyer Solutions +61 3 9816 8555 or email jspencer@buyersolutions.com.au

Buyers Advocate, Buying property, Home buying, Housing Market, Investment property, REIV

adding value, amenities, price drivers, property prices, school catchment, school zones