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To buy a house or condo for a college student is a good way to invest in real estate.
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Students were moving in to dorms and apartments at the College of William and Mary last week therefore to buy a house or condo for a college student is the question of the hour.
In today's buyer's market, it might be a smart money dcision for many parents to buy a house or condo for a college student at the College of William and Mary especially if they are in their freshman year.
Talking last week to one of our neighborhood's rising college freshmen about his college plans brought back memories about the times when my three children went off into the world.
Despite the fact that it’s been a several years since my children left for college, I remember clearly the feelings Ihad as a parent when each of my children "left the nest" for college. As they were packing up their suitcases, I felt like a part of my heart was been ripped off. If you are not a mother it may be hard to empathize with the pain that a mother feels when her children move away. I cried for a week when my oldest son left. I mourned for about 3 days when my middle child, also a son, left. So when we took our "baby" and only daughter to college in Orlando, my husband and I drove down to the Florida Keys to "lick our wounds". My husband wasn’t worried. He said, "Don't worry honey, she'll be back and she'll bring more with her".
My husband and I thought about buying a condo for her and renting out the extra bedroom rather than paying rent on an apartment. The price on condos was prohibitive for us at the time so we decided to let her rent an apartment instead. About four apartments later we were kicking ourselves.
Consider the tax advantages of owning rental property. Add to that the prices, interest rates and amount of inventory available in the Williamsburg area and it should be easy for you to see that buying a home or condo for a student at the College of William and Mary could be a really good decision.
You will need to be informed about the rental caps and number of unrelated people who can legally live in the one home. Depending on what the Williamsburg real estate market is doing when the student graduates, you could either continue to rent out the property to college students or sell it. You will be able to use a 1031 tax deferred exchange for the property to gain more tax benefits.
You will need to be informed about rental caps and the number of unrelated people who can legally live in one dwelling. If your student decides to leave the WIlliamsburg area after they complete their education at the college of William and Mary you will have to make a decision. Depending on what the Williamsburg real estate market is doing when the college student moves away from Wiliamsburg, you could either continue to rent out the property to college students or sell it. If you decide to sell the rental property you will be able to use a 1031 tax deferred exchange for the property to gain more tax benefits. You will need a realtor who is familiar with all of the local ordinances and the 1031 tax deferred exchange. I have experience in all of these areas.
You may decide that to buy a house or condo for a college student is a good way to invest in real estate.
Sybil Campbell, REALTOR®, ABR, SFR, SRES
Long and Foster REALTORS®
(757) 897-5889
WHATEVER THE DIRECTION SYBIL CAN HELP YOU LOCATE THE HOME OF YOUR DREAMS
sybil.realestate@gmail.com
licensed in Virginia and Florida
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If the parents can afford it it does seem to be a sensible thing to do. Especially if there are more than one roommate. THe concern I would have is the condition the place would be in after 4 years.