Why you should consider school zones when buying property
In Melbourne, properties for sale in the McKinnon Secondary College, Balwyn High School and Glen Waverley Secondary school zones have long attracted a ‘zone premium’, which is nothing short of gold for vendors.
So what’s it worth? Craig Williamson, director and senior auctioneer at Buxton Bentleigh, told The Age in February 2017 that houses in the highly sought-after McKinnon Secondary College catchment attract a ‘zone premium’ of 15-25 per cent.
And the data proves it.
Figures from the Real Estate Institute of Victoria show that in 2016 the median house price for homes in the McKinnon Secondary College zone was $1.5 million compared to $1,195,000 for homes in the same suburb but outside the school zone.
Such is the built in demand for properties in some school zones that real estate agents have reported people moving from one side of the street to the other just to get in it.
With property being an investment that has the ability to deliver an excellent return when it comes time to sell, many people with children are preferring to buy into premium school zones rather than spending large amounts on private school fees.
School zones attract a lot of attention
“Residences in these areas certainly attract a lot of interest,” says Christian Numa, Director of Amity Property Group.
“Of course, from owner-occupiers wanting to send their children to a great school, but also from investors who are attracted by the fantastic capital growth. And with the changes to stamp duty in Victoria, we expect investors to be looking even more sharply at suburbs that can deliver the strongest capital growth.”
Properties in the part of Bentleigh that falls in the McKinnon Secondary College school zone has drawn significant interest for many years and this is exactly what Numa is finding with Luminous – an excellent development located at 24-26 Vickery St Bentleigh, only 1.3km from McKinnon Secondary College.
“It really is a terrific project and the four 3-bedroom apartments which are selling for between $733,800 and $839,800 would be great for families looking to secure their children a place at one of Victoria’s best performing state schools.”
And there’s the lifestyle…
It should be emphasised that properties in these suburbs are not only drawing increased interest because of the school zones they fall in. McKinnon, like Balwyn, offers access to excellent lifestyle amenities, including a fantastic range of shops, cafes and restaurants.
“In the case of McKinnon you can jump on a train and be in the city in half an hour,” says Numa. “And with new infrastructure in the area, especially as the removal of the level crossings at North, McKinnon and Centre roads have greatly improved the area. McKinnon and Bentleigh really are now a premium locations.”
“As a result, one and two-bedroom apartments are also highly sought-after and represent excellent value for money.”
Numa is also quick to point out that at Luminous first home buyers pay $0 stamp duty and owner-occupiers are eligible for stamp duty concessions.
“It’s an opportunity not to be missed,” he says.
04 August 2017 News