3 Great Reasons To Buy A Home For Your College-Aged Child
Instead of helping out with rent or the cost of a dorm room, some parents are purchasing a small home or condo for their child to live in while attending college. This can actually make a lot of financial and practical sense for both you and your child, compared to the alternatives. Here are three excellent reasons to buy a home for your college-aged child instead of renting:
You Will Build Equity
If you are going to be spending thousands of dollars a year to help fund your college student's living expenses, you may as well get a financial incentive in return. By purchasing a home instead of renting, you will build equity and help grow your personal wealth. If your child is going to school in an area where home values are rising, you may be able to sell it for a nice profit in only a few short years, but either way your monthly mortgage payments will create equity.
Your Child Will be Safe
Instead of living in a run-down college apartment, you will know that your child has a comfortable and safe home to live in. Since you are buying the home, you will have a lot of control over the neighborhood your child lives in as well as the condition of the home. Since it will be your own home instead of a rental, you can even add a security system, doorbell camera, safety windows, bright exterior lighting, and any other safety features you're interested in, giving both you and your college student a lot of peace of mind.
You Can Rent it Out
If you buy a home with more than one bedroom, you can rent out the other rooms to trustworthy friends of your child, helping to cover the cost of the mortgage. If your child comes home for summer breaks, you can rent the home as a short-term vacation rental. You will also have the option of holding onto the home and using it as an investment rental property on a long-term basis after your child graduates from college and moves out.
If you are considering this step, it's a good idea to meet with an experienced real estate agent in the town where your child is going to college. They can go over the options in your price range and help guide the entire process if you decide to proceed with a home purchase.