Our eldest is 18, heading off to college soon. His mom is sad, I’m elated 🙂 We had two ways to go. We could have rented a dorm, rented a small home off campus, or an apartment close by. We also considered re-sale real estate in the city he is headed to. Real Estate around college campuses typically have low vacancy rates. Most of the rental homes, apartments, town-homes and condo’s are fulled during the semester. However, don’t forget to factor in the “vacancy” during the summer. In addition, you will probably have to do yearly re-hab’s to the property as well to get it ready for new occupants when the new Year Starts.
Is buying real estate better than paying for a dorm when it comes to your college student? Let’s face it, this is a question many parents are asking themselves right now, with school starting in a matter of weeks for many college students around the nation. Dorms and frat houses offer traditional experiences for your college student, but which option is the better investment?
Buying real estate in college towns can turn out to be a great investment because there will always be a large pool of renters. While you could potentially run into problems in the summer months there are always summer programs being held at colleges or rent can be adjusted over the other 10 months so that you can receive what you need to cover your mortgage. If you have a student buying real estate in a college town kills two birds with one stone, creating an investment opportunity and a place for your child to rest his head.
Either way you slice it you will be paying for a dorm or to rent an apartment for your college student. Buying an apartment or condo in a college town ensures that the money you put in to your child’s housing will be returned one day. Today, however, when markets around the US are showing signs of having hit bottom the investment in real estate might just be the best it has been in a very long time.
One of the things you may want to consider is letting The Paris911 Team at REMAX run the interference with you and where your kids are going to college. You may do the math, with us, and decide it is better for you to buy a small investment property than it would be to rent a dorm room for your student. Let us know where your kids is headed off to for college and we will make it happen. Be Safe – Talk soon…