Are you the parent of a student preparing for or already away in college? Then you’ve probably encountered the high cost of student housing. Even on campus dormitories can be expensive, but most students don’t stay in the dorms for their entire college career. At some point, they move out into an apartment, a condominium, or a house that they share with other students. None of these options, even when splitting the rent, are cheap.
The National Association of Realtors discovered an interesting trend from recent statistics: nearly 200,000 properties that sold were purchased for post-secondary student living quarters. This mean more parents are beginning to eye the investment potential of properties in their students’ university towns.
Think about it: you build equity, save on housing costs, and receive income during school if there are roommates and after your son or daughter graduates. You may also be able to deduct the mortgage interest and property taxes. Your biggest concern would be maintenance, and you’d probably want to hire someone to keep the property in good shape. But keep in mind that it’s a student rental, not a model home.
Ask your local real estate agent to put you in touch with an agent in your student’s new city, because they’ll have the greatest knowledge to help you select the ideal property for your student’s housing needs. It’s an educated solution.