Wonderful West Lafayette, Indiana is the home of Purdue University!

The average college student now takes more than six years to graduate. It's not clear why this is so but some reasons are that students need remedial courses that don't count toward a degree. Students are also working more. They're changing majors. Some programs are just going to take five years. The federal and state governments have added requirements for teachers, so they need at least five years.  When you add in the major changes that most students go through it is understandable.

It is a pretty exciting and scary time for parents and students when freshman day arrives and you are moving your son or daughter into a strange city and a strange place.  Making countless trips up and down the stairs of the dorms or waiting in line for the elevators along with all the other freshmen that are doing the same as you.  It doesn't take long for them to convince you that they need to move off-campus!  They cite that it will be better for them to be able to get away from campus, quieter, more study time plus it will save us money!  HA!  So they move off campus to a house or apartment where countless students have lived before them.  Their new home where the walls and windows may be cracked and paint chipping off the walls and of course the incessant drip of leaky faucets... but it is their domain!!!!  College campuses are surrounded by homes that have been bought up by investors in the business of renting to our children sub par accommodations at monopoly prices!

I almost cried the first time I visited my sons new off campus accommodations!  Even though they had cleaned out the beer cans, ashtrays, and countless fast food containers and tried to prepare for our visit, the meat and bones of the structure was far below my expectations considering I knew what the rent was!  After three years of living in his house and wondering why his room was always so cold, he ventured down to the scary basement and discovered that his heat vent was not even connected.  Had we at that time partnered up with him to buy his own place I feel we would have slept better at night!

In the last few years the numbers of College students stepping into home ownership with their parents and becoming the primary resident and caretaker for the real estate investment has escalated tremendously.

The positives for parent and students are very enticing.  A few advantages of buying a home with your child are: writing off mortgage interest on taxes, giving the child the responsibility of paying bills, taxes, managing roommates that they have chosen and helping them to grow a strong credit history.  Along with book learning our children get to experience the real world and truly be more independent.  Pride in home ownership is usually a real motivation for them to upkeep their property and to keep utilities bills lower than if they didn't have to deal with them.  They hope, of course they will build equity and have a little nest egg after they have sold the home to be able to have a nice down payment for their first out of college residence. A good way to start them off on real estate investment.

Low interest rates and many financing packages make it easier to manage a down payment and mortgage payment.  This helps more parents and students decision to buy, rather than rent from someone else an easy decision.

One very popular loan that is being used can be found on the FHA website and reprinted below:

http://www.fhainfo.com/kiddiecondos.htm

         FHA Kiddie Condo Loan            

A great way for young adults to get started buying their first home is by using the FHA "Kiddie Condo" Loan Program. This type of mortgage allows a person to co-borrow with a blood relative (eg. parent, grandparent, sibling, etc.) who helps qualify for the loan using their income or assets. Both borrowers take title to the property and sign for the loan.

There are three big advantages to using this type of loan.
1. A low down payment (as little as 3% of the purchase price).
2. A lower, owner-occupied interest rate on the mortgage Vs the higher investment property interest rate.
3. Helps the new borrower establish a solid credit rating.

With a Kiddie Condo loan program, at least one borrower must occupy the property as his/her primary residence, but extra bedrooms could be rented out to help cover the cost of the mortgage payments. This is a perfect way for a college student, recent graduate, or anyone unable to obtain a loan on his/her own to buy a condo or townhome or single family home with the help of a family member. Apply for your Kiddie Condo loan today.

The tax benefits, such as deducting mortgage interest and real estate taxes on a Federal Income Tax return, can be divided among the owners, according to who pays the expense. See your tax advisor for details.

For more information or help in locating a home away from home for your child contact me at:

Kathy Ptasnik

Realtor

Coldwell Banker Shook

Cell: (765)404-5437

Email: kptasnik@msn.com

Website: http://www.shook.com

West Lafayette, Indiana 

http://www.city.west-lafayette.in.us/

Your Real Estate Specialists are a team of 6 with over 25 years of experience!  Contact us to help you with all of your Real Estate needs. Let us find your college student a solid investement.

Home of:

Purdue University  http://www.purdue.edu/ 

Ivy Tech Community College   http://www.laf.ivytech.edu/

St. Elizabeth School of Nursing http://www.ste.org/DesktopDefault.aspx

Purdue Credit Union http://www.purdueefcu.com/

Huntington National Bank https://www.huntington.com/