When people think about buying a home, most consider things such as square footage, type of neighborhood, proximity to most frequented locations, and, of course, curb appeal. But one thing that’s often overlooked is the school district. This may not seem like a big deal for childless individuals (especially if kids aren’t in the future), but buying a house in a good school district tends to have more benefits than only good education for the students living there.
This is true especially if you’re buying a house as an investment property to rent out (the tenants may have children). You don’t want to take out investment property loans for locations that aren’t appealing to such a large demographic.
Sure, it’s generally pricier to buy a house in a good school district, but there’s probably a reason for that (and not just the benefit for those sending their children to these schools). Whether you’re buying a home for yourself or as an investment property, check out these three reasons why you should still buy in a good school district (even if you don’t have children):
Because it preserves home value
A house in a good school district tends to hold its value better than homes that aren’t. Especially if the schools in the area continue to perform well or improve. According to the New York Times, economists have estimated that for every 5 percent increase in test scores in a school district, the prices of the housing goes up by 2.5 percent.
While you’ll pay higher property taxes because of being in a good school district, this strategy still tends to be better in the long run when it comes to value and profit. According to the National Bureau of Economic Research, in most cases, “a $1 increase in per pupil state aid increases aggregate per pupil housing values by about $20.” A home is an investment, and it’s always better if that investment is worth as much as possible (especially if you’re going to consider refinancing in the future).
Because it increases the resale value
Let’s get real — it’s usually best to keep your options open. Sure, you may be in love with the house and the lifestyle now, but who knows how you’ll feel in 10 years. Buying a house in a good school district increases the chance of your being able to sell the house if something changes for you and you decide to move. In fact, according to the The Washington Post, which reported on a study done by Realtor.com, 73 percent of people surveyed who had purchased homes in 2018 said that good schools were important in their home search. Plus homes in good school districts often sell faster because this is a “selling point” for a lot of people.
Better school districts tend to lead to better neighborhoods
Better schools tend to lead to an abundance of families in that neighborhood. A lot of families tend to mean more public efforts toward public safety, closer and safer parks, more community growth through proximity to shopping and restaurants, and better access to public transportation. So, while childless individuals may not benefit from the school itself, they’ll certainly benefit from what the better district brings to the neighborhood.
Or, if the house you invested in is to rent out, this adds to the appeal. Not many people want to rent a place that’s isolated and far from amenities. Also, keep in mind that it may be extra important to do tenant screening when picking renters for your new property in a great neighborhood. Obviously, you want someone who will take care of the place and pay on time, but also, you’re going to want to get a thorough background check when allowing people to move so close to a school.