Why Investing in Homes for Childcare in Perth could be a profitable option
by Mint Real Estate Claremont
Childcare is big business in Australia.
The rate of childcare use across the country has been increasing exponentially over the last 20 years. According to the Productivity Commission, an additional 50,000 long day care places will be needed in coming years to accommodate forecasted population growth.
With such exponential growth in the sector, child care centres, whether large or small, are often an important component of investment portfolios.
It’s not just large institutional child care companies that are benefiting from this growth. Many home day-care centres are operating across the nation. Often run within private homes, these centres are able to provide a more personal level of service.
Running a home-based day-care centre for young children can be an exceptional business. However, like any business, it’s important to select the right location.
Childcare in Perth
Recent reports indicate that Perth is currently experiencing an oversupply of childcare places. However, it is important to investigate these figures more closely, as the picture is not a uniform one across the entire metropolitan region.
In fact, there is a shortage of childcare places from Fremantle through the western suburbs and into the city, but outside that area, there is spare capacity.
This is backed up by our research using the government’s MyChild.gov.au website.
We conducted an analysis of childcare service providers across a range of Perth suburbs. Comparing Perth’s western suburbs with some of the fastest growing outer suburbs, there was a clear discrepancy.
Childcare Service Providers by Suburb
Perth’s Western Suburbs
Fast Growing Outer Suburbs
The number of childcare service providers in Perth’s western suburbs was significantly lower than the number of providers in the outer suburbs.
With such a clear discrepancy, it’s no wonder that parents in Perth’s western suburbs are having a hard time finding childcare places for their children.
This shortage of supply in Perth’s western suburbs presents astute investors with a tremendous opportunity. Buy the right residential property and you could operate a day-care centre in part of the property. Alternatively, you could buy the property as an investment and lease to an existing childcare centre operator.
Either way, you stand to benefit from strong long-term returns.
Mint Real Estate Can Help
Mint Real Estate is ideally situated to help you find an ideal property for use as a childcare service provider. Our strong presence across Perth’s western suburbs means we have access to many properties that could be perfectly suited.
Naturally, as with all investment strategies, it pays to do your homework. Check with local councils about the requirements for setting up and running a childcare centre, as you want to be sure the property you purchase will actually be able to be used for its intended purpose.
Please give us a call on 08 9284 6000 or click here to contact us.