Should you buy your kid a university house?

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Should you buy your kid a university house?

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college

Should you buy your kid a university house?

Post by college » Thu Feb 22, 2018 2:05 pm

Pros:
1. Often and specially in college towns, property can be a great investment.
2. In a college town, there is a large population of renters. You don’t need to spend time marketing the area, because the area sells itself.
3. You will build equity while paying down your mortgage. This equity can be used for a future home purchase.
4. Last and the most obvious, you save 4 years or longer dorm fees.

Cons:
1. Being a landlord can be hard. You probably want tour child to focus on school, not on which roommate owes money or if it is time to winterize the house.
2. Students are not the most reliable tenants. So be ready for high tenant turnover.
3. The off season. You may have to deal with high vacancies during the summer months.
4. College students can be quite destructive on living space.This results in higher property maintenance fees and lower property appreciation.
5. 4 Years can too short to realize any return after expenses of buying, holding and selling a property after all.

Most importantly, it depends on where your child is going. In some cities it may just be cheaper buying your kid a house than paying for a dorm. After checking each city’s median house payment and median rent, you will realize how much they vary from coast to coast.

HouseBuyer

Re: Should you buy your kid a university house?

Post by HouseBuyer » Thu Feb 22, 2018 2:27 pm

I think it can be a VERY good idea under the right conditions.
Just don't forget to include closing/other fees (much higher in some places) and taxes in your calculations.
If your kid is responsible/reliable enough to take care of the whole thing you may have a winner, but otherwise you may have to travel a lot to deal with tenant turnover.
If not inconvenient, the place can be kept after your kid doesn't need it anymore.
Lots of things to consider; don't do it if you're not prepared to do your homework!

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