College housing rent vs.purchase real estate in college town
WHY PAY RENT FOR FOUR YEARS OF COLLEGE OR MAYBE LONGER WHEN YOU CAN OWN THE HOUSE AND THEN TURN IT INTO RENTAL INVESTMENT PROPERTY.
(May have tax benefits for you now and down the road, see you CPA to discuss those options).
Thinking of Buying Your College Student a Property?
Use this checklist to help determine if buying a property for your college student is a good investment:
Research the college town, current property values and rental rates.e
Do a breakeven analysis to assess the annual cost of having your student live on campus.e
Determine a budget and list out additional costs (i.e., mortgage, HOA fees, insurance, taxes).e
Estimate how long your student will be living at the property (e.g., 3-5 years).e
Weigh the pros and cons of purchasing a condo or apartment vs. a single family home.e
Consider inherent risks: What happens to the property if your student transfers schools or moves back home.e
e Discuss opportunities to alleviate monthly costs (e.g., mortgage) such as rental roommate income or renting the property out during summer breaks.
Be finanancially prepared for the typical “college renter” consequences (e.g., roommate damage).e
Explore the cost of hiring a property manager to help take care of the home.e
Crunch the numbers and consult with your nancial advisor and real estate agent.e
Total cost of RENTING four years
Total cost of OWNING four years
Dorm rent $_______
Down payment $______
Apartment rent/utilities $______
(-) Potential appreciation
(-) Rental income
When you are thinking of buying or selling real estate anywhere in the country, call me. I am an EXCLUSIVE AGENT with a huge referral network and can put you touch with experts LIKE MYSELF to make the perfect buying or selling decision. Hire with a phone call to me and let me take care of the rest. Donna Joerling 314.808.1712