The decision to invest in real estate is undoubtedly a great one and probably the most significant you will have to make. However, there are so many factors involved that the decision is not an easy one at all. When in comes to buying a home, location is very important. One of the decisions that home buyers have to contemplate is whether to buy a home near the school their children will be attending. However, homes that are located near good schools tend to be more expensive than those located away from schools. In this article we will explore how school locations impact home prices.
Impact of schools on buying trends
One of the most significant statistic in the property market is that the majority of home buyers prefer to invest in homes near schools. This static is more so in home buyers who have school going children. There is a correlation between the quality of schools and the prices of homes in that area. High quality schools attract buyers in great numbers. When there is more demand for properties than supply that tends to push property prices upwards.
Good schools protect home prices
A high percentage of people consider school boundaries in their decision-making when choosing a home. Not only are people interested in the quality of schools, but the quality of schools is also perceived as having huge bearing on the overall value of the real estate. For investors, buying a home in a favourable school zone is a sound investment that makes a lot of financial sense. Moreover, homes that are situated in good school districts are usually insulated from market fluctuations. As such, homes in close proximity to good schools make great business sense.
Good schools and property values
On the one hand good schools can lead to increased property prices. After all, we have just examined some compelling evidence that good schools drive up prices. On the other hand, it can also be argued that the quality of the neighbourhood determines the quality of schools found in that area. Generally speaking good schools are usually found in neighbourhoods with high standards of living. Buyers looking at investing in a home in a good school district can expect to pay more for that property than in an area with a less desirable school. Sellers that are selling a home in a good school district can ask for a higher price for their property as compared to similar homes is less desirable school districts.
While good school districts lead to increased property prices, but this also leads to increased property taxes. There is a direct correlation between homes in excellent school districts and higher property taxes.