will the known school drive market price up in future?

S

skk

I am looking for the property in Bentleigh east, been told by agent the price of property in Mckinnon Secondary school zone is much higher than that of outer of zoning, even 100k higher or more. also the same thing happending in Balwyn high and Glenwaverly high zone.
the question is how do you think the market price will be driven by known shcools in future? I am quiet intereted in buying an inverstment property in bentleigh east(mckinnon school zone). thanks for any comments.
 
I think it really depends. For Balwyn High, I know that you have to be in the catchment area to be able to be enrolled. My PPOR is, thank god is just in that catchment area. I know it's the same for high schools in Canterbury and Camberwell, and lets just say that you will struggle to find a house for under a mill in those areas.
Don't know anything about the schools in Bentleigh nor Glen Waverly to comment there.

I do know that if you have a long term lease in the Balwyn High catchment area, then you can be enrolled there. So in my opinion, yes, rentals in those suburbs would be significant investment.
 
skk said:
I am looking for the property in Bentleigh east, been told by agent the price of property in Mckinnon Secondary school zone is much higher than that of outer of zoning, even 100k higher or more. also the same thing happending in Balwyn high and Glenwaverly high zone.
the question is how do you think the market price will be driven by known shcools in future? I am quiet intereted in buying an inverstment property in bentleigh east(mckinnon school zone). thanks for any comments.
Click to expand...

Super high schools (all three of them) will always attract a large premium. If you could afford it, obviously getting a property within these school zones is a good choice, as they tend to be one of the "epicentres" during a boom. However, houses in the surrounding area tend to catch up through rippe effect rapidly, so from investment point of view lower entry cost may be a plus. Also, from what I've noticed, (I live in Glen Waverley outside the school zone) properties within the school zone tend to sell quicker than the ones outside, and that they're less likely to sell at a large discount to the asking price. This is important if you are thinking of refinancieng during a downturn. Having said that, schools around a premium school also tend to attract a lot of attentions and fundings as people are priced out, and this tends to improve the quality of these schools over time, and could act as a price support for the properties not within the zone.

In your case, IMHO, go for a decent house/townhouse with smallish land component (300-400m2) in McKinnon school zone. Have a quick search on the prices and respective locations for all three suburbs, and you will find that McKinnon is either undervalued, or the other two are overvalued :)
 
skk said:
any other comments?pls
Click to expand...

A suburb with good schools will always be more popular
and therefore properties will sell for higher price.
I pick my IP's in areas with schools
I always have tenants and if 1 day I sell I will have no problem finding buyers.
 
ziggy2214 said:
A suburb with good schools will always be more popular
and therefore properties will sell for higher price.
I pick my IP's in areas with schools
I always have tenants and if 1 day I sell I will have no problem finding buyers.
Click to expand...

Thanks ziggy, your story encourages me.
 
I just bought a property in Mckinnon School Zone. In raining day, there were still 3 bidders, but I was lucky. the price is not too high, close to asking price range and lower than vendor's reserve price. the market in school zone is still hot in current softening period coz every buyer who wants to live in school zone is thinking it's time to buy:)
 
We live by a very highly regarded middle class govt school. I have been told that people move her because of the school - certainly it influenced our choice when we arrived in Newcastle.

Recently when I sold my agent (whom I know and trust) discussed this with me. It was her belief that a property within the zone for this school (a NSW thing) was worth $50-100K more than it's counterpart a block outside the zone.

I tend to agree with her from my observations over nearly 7 years here.
 
propMelb said:
I just bought a property in Mckinnon School Zone. In raining day, there were still 3 bidders, but I was lucky. the price is not too high, close to asking price range and lower than vendor's reserve price. the market in school zone is still hot in current softening period coz every buyer who wants to live in school zone is thinking it's time to buy:)
Click to expand...

encourage me now. thanks, propMelb
 
Simon said:
We live by a very highly regarded middle class govt school. I have been told that people move her because of the school - certainly it influenced our choice when we arrived in Newcastle.

Recently when I sold my agent (whom I know and trust) discussed this with me. It was her belief that a property within the zone for this school (a NSW thing) was worth $50-100K more than it's counterpart a block outside the zone.

I tend to agree with her from my observations over nearly 7 years here.
Click to expand...

how about rent in school zone, higher than outside the zone? thanks.
 
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