• Mollard Property Group

8 reasons to invest in childcare property assets

Updated: May 5

Childcare property assets are one of the strongest and safest, long-term investments, backed by growing long term demand for quality childcare places and powerful Government support.

Here are 8 reasons why you should consider investing in the childcare property sector.

1. Favourable Lease Arrangements

Childcare centres operators are considered Blue-chip tenants that must uphold high standards of cleanliness and upkeep, to meet stringent industry regulations. With long-term, friendly lease terms, including blanket recovery of landlord expenses.

2. Strong Underlying Businesses

Boasting strong underlying businesses with consistent increases in daily fees over the last 10 years. Allowing for a steady annual rental increase without the fluctuations other commercial property’s can experience.

3. High Residential Land Values

Childcare centres occupy large areas of land in residential areas, with high underlying value. Often the zoning of these properties allows for the conversion to residential uses. This is a huge benefit as a growing asset.

4. Attractive and Profitable Returns

Childcare assets offer more profitable, secure long-term returns compared to other investment classes, such as residential property. Rental yields are impressive with the average national yield sitting consistently on average between 5-6%.

5. Increased Demand

The Australian Government continues to provide subsidies for childcare assistance, making childcare services economical for families. In turn more women are returning to the workforce increasing the demand for childcare.

6. Unaffected by Offshore Economics

Childcare in Australia will remain strong, allowing local investors the opportunity to diversify into an asset sector unaffected by offshore economic factors as they will remain an essential service.

7. Depreciation Benefits

Majority of childcare investments feature modern construction, this allows significant long-term depreciation benefits across the life of the property.

8. Partnering with Experts

Mollard Property Group do all of the hard work for you providing bulletproof strategies with our one stop solution service. To ensure your investment is risk mitigated and stress free.

"Revenue is expected to reach $19.5 billion by 2023 with main drivers over next 5 years seeing more women in the workforce, higher number of children under the age of 12 and expected increase in Australian Government assistance with fees."

Jimmy Tat - CBRE

If you are thinking about building your own childcare centre, a one-on-one chat with Phil is invaluable! Contact the professionals for a free, no-obligation consultation. We can help with the expert, professional well-informed advice you need to make your childcare centre investment a complete success. Contact us now.

13 views0 comments