It’s hard enough for students to come up with the money to pay the rising cost of college tuition, but what about room and board? In fact, at some colleges, the amount charged for housing has increased at a faster rate than tuition. This expense offers an opportunity for family members to help out. In some collegiate real estate markets, individuals purchase a small starter home or condominium near campus for a child or grandchild to live in while attending college. Consider the potential advantages:
- The student receives low-cost housing throughout college
- Future siblings and other relatives attending the same college also could benefit
- You can sell the home when the last student graduates for a potential return on investment
- When it’s time to sell, there could be a strong pool of potential buyers with the same idea about the collegiate market
- Individuals looking for long-term rental income likely will find a stable pool of renters
- If it is located in an appealing college town, the property could become an option for downsizing or a second home
Be sure to consult with a professional real estate agent or broker to help decide what’s best for your unique situation.