20 August 2010
1. First of all, it’s extremely difficult to find on-campus housing because the dormitory space is limited (and even if it’s not, it’s still expensive).
2. Many parents who buy real estate for their children believe it’s a good investment, because its value can rise during the next few years and they might sell the property to cover their education costs.
3. A campus house gives students greater freedom: a choice of roommates, a full kitchen, private bath, cable and Internet etc.
4. It also offers a chance to cut some of the higher education cost and even provide their children with a good credit history.
5. In addition to it, parents can write off the mortgage interest and property taxes on the second property, but it’s better to consult the professional.
6. It’s always possible to offer your house for a rent to other students after your own children move on.
Of course, you want a property that you can keep fully occupied and that will produce rental income to cover your costs (mortgage, insurance).
But what frighten many parents are many unknown factors. There are too many questions and doubts about it: What if I can’t rent it? What if my son or daughter drops out? What if? What if?
It’s necessary to make sure your child is serious about it.
And yes, buying a home can be riskier than paying for a dorm room. We can’t guarantee you that the property will rise in value. But it’s really a pretty common thing to do. The deal is that monthly cost of owning real estate may be even cheaper than the cost of renting off campus or paying for the dorm room.