It’s an old investment property maxim that the wise investor buys property close to various things, such as employment and schools. But never has this rule been truer than right now. Particularly in regard to schools or other educational institutions.
I’ve been looking into this area recently and it’s caught my attention. So strong is the coming demand for education in Australia, that I foresee the next great boom in demand for property is going to be heading to a school zone near you.
This is particularly going to be driven by the demand coming from international students.
According to a report by the International Education Advisory Council, international student numbers are set to rise by 30% by 2020. The report, released by the Federal Government, stated that we would see foreign students rise to over 500,000 by the end of this decade.
Students need good, affordable accommodation. And if you think that a group of them are going to rent an old share house in North Melbourne to live in, that is just not the way international students operate in Australia.
Purpose-built student accommodation will increase to cope with this demand. As will good quality housing near quality schools. The whole sector will grow.
Student accommodation can be risky if not done the right way by the right people who know how to do it on the right scale. But it has to be done on a larger scale to make it work.
But quality accommodation, done in the right way to attract wealthy families in the right areas, near the right schools, can be a wise and smart investment.
We are currently working on some projects in this area and will have more to tell you about soon, but just a little heads up that there is movement in this area and it is worth looking into.
Until next time, happy investing.