I have been teaching parents for the last five years on how real estate can pay for college. I created a web site www.asurealestate.com so parents can learn more about this concept.
The list of college costs can seem countless--ever-increasing tuition, textbooks so pricey they might as well be encrusted with gems and endless incidentals of food, clothing and activity fees.
There's not much you can do to make those expenses less painful. But there is one area where you can soften the hit to your wallet--and if you're lucky, even turn a profit. Invest wisely in housing, and instead of paying for pricey dorm rooms or ratty apartments, you can write a monthly check that boosts your equity.
The cost of housing a college kid keeps going up--according to The College Board, which puts out an annual report on college pricing trends, the average room-and-board expenses for undergraduates at private schools in the 2004 to 2005 school year totaled $7,434, up 4.6% from the year before. Meanwhile, the median existing home price in the U.S. went up a similar amount from July of last year to July of this year. Where would you rather feel the increase?
Before You Buy For Your Student, Ask Yourself:
- Can my child handle the responsibility of ownership? This is more often a question of maturity than an issue of chronological age. Some students are perfect for this arrangement at twenty, and some are not ready by thirty!
- Does the city/town where the school is located have suitable housing, at a reasonable price, to purchase? If your child is attending N.Y.U. and wants to live in Greenwich Village, you probably are NOT going to make the numbers work!
- Is property appreciating in the area; is this a "hot" location? With Tempe recently rated #2 among southwestern cities, it is easy to see why homes in this area have risen in value.
- Will there be a steady supply of good tenants? If quality student housing is in short supply, then chances are excellent that the unit will never be without a good tenant.
Let me know what you think about this concept. Another reason for people to purchase real estate.
Make the Call, Set the Plan, Do the Deal$!
Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities. The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona. You can listent to past shows, or stream on-line.
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Harry,
Love the blog! I have one in college and one on the way into college. I DEFINITELY hve been thinking of this! But then again, I'm in this industry, so I better be!
I hope consumers see your blog and take it seriously. NOW is the time to buy and try to recoup colelge expenses or at least save on dorm costs!
Thanks, Harry!
Ann
Great input Ann
Thanks for the information today
I often get calls from parents who wish to buy a small condo or house for their student child to live in during school years. Not so much lately, but it still happens.
My best sale was a UMD graduate student who purchased a small home within biking distance of the university. She paid $140K for the house. Her dad finished the basement.
Her monthly payments were $1100 a month. She rented the basement to another grad student for $750 a month and the second upstairs bedroom for $450 a month.
This is her third year in the home and it hasn't cost her a dime.
Smart lady. Lovely folks.
Thanks for feedback Lenn. Real Estate pays for college