Chris Childs

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Should you be looking to go back to school?

With so many factors affecting where you implement your property investment strategy, it can be difficult to concentrate on which ones are important. From local infrastructure projects through to the official cash rate, or vacancy rates in a suburb, there’s a lot to keep an eye on. But at the moment, one that we think is important to watch if you want capital gains through property investment is schools.

According to Australian Bureau of Statistics Figures, there was an increase of nearly 50,000 students going to schools over 2013-2014. That means a lot more parents looking to buy or rent property in areas where they want to their kids to be educated, which can mean tidy profits if you invest in areas near these sought after institutions. 

Here’s some specifics on what to watch for when you invest near educational facilities. 

More international students

The Australian government’s Department of Education and Training recently released the numbers on international students coming to Australia for their education, and there has been a sharp rise. In the 12 months to November 2014, there were 12.3 per cent more full time international students enrolling in our country’s schools.

What that number means is a lot more students seeking accommodation. While there have been plans announced for renovation of office buildings as student accommodation, there could still be a large market where international students seek out rental property

The allure of rentals

As you may have heard, the government also recently floated the idea of imposing a fee on residential real estate purchases by overseas parties. What this could mean is that more international students will be seeking rentals rather than a home purchase, which is where benefits could be in store for property investors.

Buying a new investment home near higher education facilities or good schools and having it as a rental property could make for great positive cash flow yields. Many parents will pay a premium to secure property, rental or otherwise, close to a good school or university. This can mean great returns for you, and should absolutely considered in any property investment plans. 

Think about good schools as miniature property hot spots. Families and students want to be nearby, and so demand is likely to increase in these areas as the number of students enrolling in Australia keeps rising. Implementing a good strategy alongside a wealth coach can see you make great gains if you can buy in the right area.