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Real estate agents claim that school districts are very important when it comes to property values. After all, parents want to ensure that children receive the best education possible, and a top-rated school district can make all the difference. The question is, how much of an impact do school districts actually have on property values?
According to a recent study, homes in a highly-rated school district can sell for up to 20% more than those in lower-rated districts. So why do school districts have such an impact on property values?
How Does a School District Actually Affect Property Values?
Parents are willing to pay a premium for access to top-notch schools. They understand that great education can open doors for their children and set them up for success in the future. Additionally, homes in highly rated school districts tend to hold their value better over time, making them a smart investment for buyers.
Real estate agents don’t believe so much in the numbers for these properties. They say it’s about understanding the needs and priorities of their clients. If a great school district is at the top of their list, they focus their home search on those homes within the said boundaries. At the end of the day, having a school district is one of the factors to consider when buying or selling a home.
Does a Home in a High-Rated School District Have More Value?
According to a school’s housing reports, neighborhoods with at least one good school can greatly increase a home’s value and appreciation. In the U.S., schools with a good test score of thirty percent above the state average are seen as good schools. Nearly a decade ago, the average estimated home value was four hundred and twenty-seven thousand dollars.
This amount was roughly seventy-seven percent higher than the national average of two hundred and forty-one thousand dollars. Thus, in the zip codes with great schools, you’re talking about an average price point of four hundred and twenty-seven versus those of two hundred and forty-one with good schools.
The same study also revealed that homeowners earned an appreciation of an average of seventy-five thousand dollars since their purchase. This is in an area with at least one good school. On the other hand, homeowners with the zip code without good or any schools for that matter, gain an average of only twenty-three thousand dollars.
Will Buying a Home in a School District Offer More ROI?
The straight answer is yes. However, this is not to say that houses do not go up in value if they are not located near a school. They surely do, but the ROI is less in comparison to those properties located in a good school district. At the end of the day, having access to great schools greatly impacts the value of your home.
However, if you are a buyer and don’t have school-aged children, it may not matter as much to you. But you may have children in the future if you’re a younger couple or someone in your family does. Additionally, when you want to sell your house sometime in the future, they may have children, and proximity to a good school may be a huge factor for them.
Is It Necessary To Invest in Properties in School Districts?
As stated in the prior section, having access to good schools matters to everybody, whether or not they have school-aged children. Your home is an investment, and with time, you will want to get a high ROI and decide to move to some other part of the country. Therefore, it is an important factor to consider if not necessary.
Real estate agent Brian Gubernick says that all his clients see it as an investment. Of course, it is a home first, so most people don’t think about selling it in the future as they have an emotional connection to it. However, you cannot deny that it is the most significant investment of your life, so it is crucial to take the information.
When you are looking at properties in Dubai, consider looking at those homes that are located in good school districts. Of course, it is not to say that that’s always possible. But having schools in proximity does matter.
Cons of Buying Properties in School Districts
All that glitters is not gold, and so is true about buying homes located in great school districts. There are only a limited number of school districts in a city and country. Therefore it is impossible for everyone to get good school districts near their houses. Additionally, the property taxes and the price itself is very high for properties in these areas.
Everyone does not have the budget to house in good school districts, even if they want to. For those with a budget constraint, like a young couple with no savings or a retired banker who wants to keep his expenses at a minimum. For such people, buying a property in a school district is not viable.
In addition to the above disadvantage, houses in the same locality as a school may not be a lucrative deal at all. Homeowners are constantly exposed to loud noises in the daytime and nasty students creating all sorts of commotion in the neighborhood. Sometimes the school may organize a parade and sort day, which adds to all the chaos.
Is Buying a Home in a School District Worth the Investment?
Buying a home in a school district is definitely worth your investment as you get a great location as a compliment. Schools and other educational institutions are usually built near main roads with access to public transportation and eateries nearby. Therefore, if you are looking for a high rental yield and an ROI in the future, you must look for houses in a school district.
If you are looking to buy a property in the Arabian Ranches, Downtown Dubai, or Damac Hills, then you can do it from Top Luxury Property. Their property listings are on point as you get the best neighborhoods and connectivity to major places like the airport and mall.