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One of the first things any investor considers when buying property is location. That is because where a property is located can drastically impact its value, demand, and profitability. Some people like properties that are isolated with plenty of privacy, while other people value the ability to live close to key amenities, such as schools.
Buying property near a school can be a perfect investment for families, or investors looking to make money in college towns. This is because of the variety of unique advantages these properties have for them. However, for others buying a home near a school is the last thing they would ever want to do. So, in order to learn why you may want to (or not want to) buy property near a school let’s weigh the pros and cons of these properties.
Buying a property near schools and colleges can be an excellent way to save money. Normally, these properties are located in neighbourhoods with lower living costs and walkable amenities such as libraries, public parks, and affordable grocery stores, allowing you to save money on gas and necessities. This affordability is often manufactured into the neighbourhood because it is expected to be full of students who may not have time to work full-time jobs while completing their studies.
Con: Lower Rental Income
The affordability of these neighbourhoods can be a blessing for local residents, but for investors, they come with come key challenges. The average rental price near a school is often significantly lower in order to account for students not having the time to work full-time jobs the majority of the time. This means the potential cashflow investors can pull from these properties is noticeably less.
Pro: Increased Property Value
While houses in school zones are often rented for lower prices, parents will often pay top dollar to buy home near good schools for their children. The value may go up even further if the property is near a private school, as those are often strategically built in high-value neighbourhoods to begin with. This allows property values to rise and makes school zones a potential gold mine for flippers and wholesalers looking to capitalize on the high demand these neighbourhoods have very quickly.
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Con: Harder to Sell
While a property can increase in value due to its proximity to a good school, it can also become harder to sell. That is because while there are plenty of people willing to pay more money to own a home close to their child’s school, other people would rather live anywhere else. This reduces the number of potential buyers.
As well, if the top selling point of the house is its proximity to the school, the demand for the property will fluctuate based on the quality of that school. Schools with poor ratings or generally bad reputations will not attract buyers very easily when compared to top-rated schools or respected institutions.
Pro: Quiet Summers and Afternoons
While the school year is going to be full of loud kids and busy traffic, the summer is going to be much quieter. Between families going away on summer vacations to the lack of morning drop-offs, the sounds that filled your year will melt away, giving you 2-3 months to relax in silence.
As well, during the louder months, the majority of the noise happens during the morning and early afternoon. Meaning if you work during the day, the neighbourhood will typically be quieter during the afternoon by the time you get home and the students have gone.
Con: Noisy Days
School zones are loud. Between the sounds of kids playing in school yards, school bells, and traffic. There are a wide variety of sounds that will be constantly going every single day. If you are looking for a quiet lifestyle, it will be nearly impossible to do so there. The noise is often quieter near colleges and universities because more time is spent studying than playing in a school yard, but then you may also have to deal with the sounds of college parties on nights and weekends instead.
Pro: Childcare and After-School Programs
Many schools offer additional childcare and after-school programs in addition to their typical hours. This can be a lifesaver for working parents who may not get off work in-time to pick their children from school, or families who cannot afford private babysitting every day. The programs offered at public schools are frequently affordable and easy to enroll into as well.
Beyond that, children may also have the option of spending the afternoon with friends at local parks or neighbour’s houses for free, saving even more money.
Con: Loitering and Vandalism
When students go out for lunch or after school, many of them will take their time going between destinations and in many cases may end up loitering in your yard. This is often a massive turn away for buyers, especially those who would put extensive care into their yards and worry about any vandalism or littering that passing kids may cause.
The Decision is Yours
Whether you are looking to buy a principal residence or another income property, the choice is yours. So, make sure you take the time to properly weigh the pros and cons of the property before you buy. If you are unsure, talk to your realtor about it and let them help you determine if the property is right for you and your goals.
Of course, before you buy any property, it is always recommended you get a pre-approval from a lender who is ideal for your specific situation. So, contact LendCity today at 519-960-0370 to book a consultation or start the pre-approval process today. For more information, you can visit LendCity.ca