May 2017 – NSW Childcare Overview

9 May, 2017 / Vanessa Rader and Michael Ajaka

The Child care market has evolved as a standalone asset class over the last few years. Given the increase in need for these types of facilities due to the high birth rate coupled with the growth in the two income family structure, occupancy levels are positive and income levels are stable.

Government subsidies for parents also make this a viable option for many families and the implementation of preschool programs has made this type of facility encouraged prior to commencing school full time.

For an investor, though the yields can be sharp, the benefits of owning a property head leased by a quality tenant with stable earnings are high. The required health and safety standards, quality indoor/outdoor facilities and their maintenance is the responsibility of the tenant and makes this asset class an attractive investment choice.

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