Proximity to schools affects property values
Proximity to schools affects property values as you may need to pay more when closer to good schools.
Obviously, location is everything. There are many factors that will affect the price of the property you want to buy, such as the quality of the street an amenities are nearby? Recent research from the REIV is very interesting showing the incremental cost of buying in highly regarded school zones around Melbourne’s suburbs. Property that is within a school zone will on average be more expensive than those outside of school zones. Below is a table showing median house prices of properties inside school zones and boarding the school zones.
PRIMARY SCHOOLS
| 12 months to Jun17 | In School Zone | Bordering School Zone (1km) | Difference |
| South Yarra Primary School | $2,000,000 | $1,435,000 | $565,000 |
| Fitzroy Primary School | $1,600,000 | $1,301,000 | $299,000 |
| Valkstone Primary School | $1,620,000 | $1,331,000 | $289,000 |
| Lloyd Street Primary School | $2,000,000 | $1,736,000 | $264,000 |
| Hampton Primary School | $2,015,000 | $1,800,000 | $215,000 |
| Altona Primary School | $945,000 | $825,000 | $120,000 |
| Hartwell Primary School | $1,995,000 | $1,887,000 | $108,000 |
| Preston West Primary School | $1,000,000 | $900,000 | $100,000 |
| Auburn South Primary School | $2,292,500 | $2,200,000 | $92,500 |
| Templeton Primary School | $955,000 | $902,000 | $53,000 |
SECONDARY SCHOOLS
| 12 months to Jun 17 | In School Zone | Bordering School Zone (1km) | Difference |
| McKinnon Secondary College | $1,637,500 | $1,390,000 | $247,500 |
| Camberwell High School | $2,220,000 | $2,051,000 | $169,000 |
| Malvern Central School | $2,557,500 | $2,401,000 | $156,500 |
| Balwyn High School | $2,052,500 | $1,910,000 | $142,500 |
| University High School | $1,470,000 | $1,357,500 | $112,500 |
| Frankston High School | $720,000 | $620,000 | $100,000 |
| Mount Waverley High School | $1,335,000 | $1,250,000 | $85,000 |
| Box Hill High School | $1,338,250 | $1,265,500 | $72,750 |
Source: https://reiv.com.au/news-resources/latest-news/education-hot-spots-driving-house-price-growth
Families are choosing between paying private school fees or using that money to invest in properties close to reputable public schools. This has been the case for Secondary Schools for some years but is now also the case for Primary Schools that are considered exceptional.
Do your research before buying a property. Stamp duty in Victoria is around 5.5% for second home buyers and for first home buyers above $750,000. This is a huge sum to pay to buy the wrong property for your future needs.
If you don’t know Melbourne well, then an excellent reason to employ Buyer Solutions experienced buyers agents is their local knowledge. It can really fast track your purchase. It can also ensure you don’t make an expensive mistake.
Buyers Advocate, Buying property, First home buyers, Home buying, Investment property, Janet Spencer
+61 39816 8555