| Whether or not you intend for your home to be an | | | | pay private school tuition to ensure a quality education |
| investment, it is. The school district where your home is | | | | for their children. According to the Cato Institute, the |
| located influences the value considerably. The | | | | average cost of private school education for first |
| foremost reason is that many potential buyers have | | | | grade through twelfth grade is $3,116. Multiply that out |
| children and the quality of education is an extremely | | | | and this family will pay $68,552 at a cost of $6,232 |
| important factor in where they are willing to move. | | | | dollars a year for education. This dollar amount |
| Parents value a good education for their children, and if | | | | translates into a mortgage payment at 6% interest of |
| the public schools are not satisfactory, many elect | | | | approximately $83,000. Not only would this family have |
| private schools or move to an area with better public | | | | to buy a home for $83,000 less, they also would not |
| education. The costs associated with a private school | | | | have that money to invest for the future or to use that |
| education generally run into the thousands of dollars | | | | money for other expenses. |
| every year. | | | | Another option for this family would be to move to a |
| If a home is located in a school district with an | | | | location where public school education is better |
| excellent track record, private school education may | | | | thereby eliminating the need to send their children to |
| not be necessary, saving a family money that would | | | | private schools. By choosing this option, this family will |
| otherwise be spent on education. In this case, a lot of | | | | be able to use this extra money in whatever way they |
| money that would have been spent on education can | | | | see fit. Usually, a substantial portion of this money is |
| be used for other purchases. High on the list for people | | | | used for the purchase of a home. For this reason, |
| with extra money to spend, is on the purchase of a | | | | neighborhoods with better schools tend to have people |
| home. This in turn creates added value for a home in | | | | with more income to spend on homes so the price of |
| an excellent public school district and increases the | | | | homes goes up.Buying a home is a very important |
| value of homes located there. | | | | decision and the implications of choosing a home that |
| Let's take a look at an example: A family of four, with | | | | does not include being located in a great school district |
| two children in elementary school, one child in first | | | | can severely impact the long term value. |
| grade and another in third grade, have a combined 22 | | | | If you are considering a move, make sure that you |
| years of education to be concerned about. Let's say | | | | take into consideration whether or not the school |
| that a home that this family is interested in is located in | | | | district your next home is located in constitutes an |
| an area where the public education is sub par. This | | | | added value to the home itself. The decision to buy in |
| family would feel obligated to provide a good | | | | a good school district will pay dividends in the long run. |
| education to their children. To do so they will need to | | | | |