September 23

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An Investment Guide Into Childcare Industry


Childcare is becoming an essential part of Australia’s social and economic fabric. It has grown from its humble beginnings as a child-minding facility for working parents to become a vital part of Australia’s Social Architecture. It is an important augmentation of the primary education system while also contributing to economic growth by allowing more people to join the workforce. Various child care brokers cater to this industry and help the set-up of childcare centres. Childcare industry services are available in two main kinds. The “Long Day Care” (LDC) industry is the largest provider of pre-school childcare services. LDC Centres are licensed and government-regulated child care facilities that must run for at least eight consecutive hours each business day and be open to the public for at least 48 weeks out of the year.

The “Family Day Care” (FDC) sector is a secondary provider, where registered providers deliver home daycare for a small number of preschoolers. With its emphasis on improving quality, early learning and socialisation skills, LDC has been the clear preferred structure in recent years. Only LDC provides the potential for property ownership in terms of real estate investment.

Investment and issues relevant in LDC Childcare properties are addressed here. A broad understanding of the childcare industry should be obtained to make informed investment decisions. The following sections provide an overview of the critical and evolving role of childcare in modern society and the trends that are likely to impact investment in the industry in the following years.

Why Should You Invest In LDC Childcare Industry:

Over the last decade, the LDC Childcare business has grown dramatically. More than 8,300 LDC Centres serve more than 790,000 pre-school children in Australia, delivering exceptional quality early education and socialisation skills. Significant improvements in the level of financial assistance, primarily from the Federal Government, have aided the sector’s maturity and improved the quality of results for children, families, and the economy at large. Unlike civil infrastructure projects, this type of infrastructure investment pays off immediately in terms of socio-economic benefits.

Parental preferences are reflected in the growing domination of the LDC portion of the childcare industry compared to Family Day Care. LDC centres are becoming known for the high quality of early education they provide. They now have a wide range of facilities to choose from, including vast, purpose-built, and child-safe learning and playrooms and extended hours to accommodate working families better. The drop in Australia’s worldwide reading and numeracy ranks is causing significant worry. The inclusion of structured early education into the educational stream is hailed by parents and recognised by the government as a critical step in reversing the trend.

Government strategy is focused on post-pandemic economic recovery, and it will stay so for the foreseeable future. Childcare services are unique in that they promote the government’s social and economic goals, and increased spending yields a quick return on investment.

If you are planning to invest in this booming industry, then professional child care brokers would be needed, as many essential variables should be considered in the LDC industry. These include operators willing to invest in establishing and managing the increasing number of Centres, skilled and energetic specialist staff, employee skills training, parental support and engagement, government oversight, and investors willing to commit the required finance to the construction or acquire from more than 8,300 LDC Centres currently in operation. The gross value of LDC real estate assets in Australia is projected to be more than $18.2 billion.

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