Buying in school zones | 9 News Perth
How far would you go to get your child into one of the best public schools in Perth? Some parents are willing to fork out an extra $50,000 to buy a house in prized catchment areas.
In August 2014, Momentum Wealth Managing Director Damian Collins spoke to 9 News Perth’s Oliver Peterson on the topic.
Hear what he had to say in the video above and transcript below.
News Anchor: “Well, how far would you go to get your child into one of the best public schools in Perth? Some parents are willing to fork out an extra $50,000 to buy a house in prized catchment areas.”
Oliver Peterson (Reporter): “Trying to find the perfect house can become a full-time job. For the Maxton family, it took three years.”
Sandra Maxton: “The competition’s enormous. Like, when the property comes on the market, you really have to be prepared to put an offer in very quickly or they’re gone.”
Oliver Peterson: “That’s because they wanted to buy in Doubleview.”
Sandra Maxton: “My oldest son really wants to go to Churchlands High School, so we wanted to make sure we were in the catchment area.”
Oliver Peterson: “It costs only $235 a year to send a child to a public school, but parents are prepared to pay tens of thousands of dollars to get into Perth’s best.”
Damian Collins, MD, Momentum Wealth: “It’s a small premium to pay when you look at it. It’s a good government school, your kid gets a good education, similar to a private school. You could be paying a couple hundred thousand.”
Oliver Peterson: “Making the whiteboard for Perth’s most in-demand schools, include Willetton Senior High, Shenton College, Rossmoyne Senior High, along with Churchlands. Local real estate agent, Rob Druitt, says if you want to buy in those areas, you’ve got to be quick.”
Rob Druitt, First National Real Estate: “It’s one of the main questions that buyers often ask. Is it within the school zone that they’re seeking?”
Oliver Peterson: “Here in South Street in Willetton, what side of the road you live on can make a big difference. If you live on this side of South Street, you fall into the Leeming Senior High School catchment zone, where the average 4×2 costs $698,000. But, if you live on this side of South Street, you fall into the Willetton Senior High School catchment zone, where the average 4×2 costs $730,000. That’s an extra $30,000 to send the kids to one of Perth’s top performing public schools. A recent analysis by a financial planning firm revealed houses in prize school catchment areas can be worth $20,000 to $50,000 more.”
Damian Collins: “We’ve certainly noticed in Perth, in the good school districts, you can find that anywhere from 5% to 10% more people will pay to get into those areas.”
Oliver Peterson: “And if you can’t afford to buy in the school zone you’re after, you can rent. But real estate agents say you need to be prepared to pay a premium.”
Rob Druitt: “Tenants want to be in a secure lease so that they know that their child will remain within the school zone.”