5 Indicators You Should Buy a House for Your Child's College Years
Is your teen headed off to college? Most American parents must now turn their attention to managing the steep costs and complications of getting that four-year (or more) degree. One choice that can help in a variety of ways is to purchase a home near the university instead of relying on temporary housing options. While this seems like an extreme option, it can be the perfect solution for families in certain situations.
How do you know if this could be a great option for you? Here are five key indicators.
1. Your Student Likes Roommates
Buying a home for one college student to live in alone may not produce large financial savings versus dorm housing. But if your kid is good with people, the extra bedrooms provide lots of opportunities to share housing and food costs. In addition, students who are hesitant about being on their own get some company without being surrounded by an entire building of strangers.
2. Your Child Needs Space
Not every young adult is cut out for dorm life. They may not thrive while concerned with the social orders of dorm life, distracted by partying or feeling stuck on campus. A small house provides the independence and peaceful atmosphere that your child may need. Only parents and their adult children can make the decision as to which structure would work best for academic success.
3. You Have Multiple Kids
Houses are long-term investments, of course. So the longer you hold the home, the more you save and the more it appreciates. A family sending just one child to a distant university for four years may not see the biggest gains from buying a home. However, if you have more than one child headed to the same area for education, this is a wise investment.
4. You've Thought About Being a Landlord
The advantage of buying a home for college years is that you don't have to sell it when they graduate. Instead, some parents use the home to launch a side business as a landlord. If you've considered trying out the landlord world, remember that other parents will be looking to rent the home you've already purchased. Your client pool is built in.
5. You Want to Diversify Investments
Could your retirement or investment plans use a boost? Real estate is a great long-term investment that offsets traditional stock and bond investing. It may fit into your future retirement plans if the area is nice. Or, buy a home and let it appreciate for four, six, eight years or more. The sales price after your child is done using it could make it all worthwhile.
Where to Start
Want to know more about your real estate options? Start by meeting with a real estate agent in the university area and touring some homes for sale. You may find that this nontraditional idea is an answer your family didn't even know they could choose.
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