Sometimes an interview gets published, and other times it gets left on the cutting room floor (wow, way to mix metaphors!). I give a lot of interviews, and most of them end up never being published.  This is one instance where an interview actually got into print, and on the front page of the real estate section, no less..

In this past Sunday's Chicago Tribune, yours truly was quoted as part of an article called College condos 101, by Jeffrey Steele, which discussed the phenomenon of parents purchasing a condominium for their child for the period of time they attend college.

Back in the heyday of real estate, parents sending their children to Northwestern University (right here in Evanston) would purchase a 3 bedroom condo... have their child rent out the extra two rooms, to help defray costs, and when the student graduated (in 4 or 5 years) sell the condo, and not only save the money they might have had to pay for dormitory living, but actually end up with a profit in the long run.

As y'all might have noticed, real estate's heyday is long gone, but there are still those who follow that route.  For the parents with the means to purchase a condo for the kid, they're not so much looking for a profit anymore, as it's very possible that the condo will be worth less than what they paid, 3-4 years later, but they still might come out paying less than it would have cost to live in a dorm (especially if they rent out the extra rooms to other students).

(254  -30)
 
Geeze, I just hate seeing my name in print.

ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate
Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201
847.425.3779      Cell: 847.924.3313      Email: Almay@aol.com
Evanston Real Estate & North Shore Real Estate • Licensed in Illinois

   

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53 Comments on In the land of the blind, the one-eyed man is King!

20 Most Recent Comments Displayed Show All

AUG
27
2011
1,348,414 Points 41 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Alan - Congrats on not being let on the editing floor ; )

Seriously, depending on numbers, this could make a lot of sense.
11:04pm • #34
AUG
28
2011
1,388,783 Points 27 Featured Posts Hit Router Called Shot Master

Alan, it's most often a smart thing to do.  We did it in Gainesville for our son and lost money on the condo, but in the long run we saved a net of around $45,000 for the 5 years.
8:53am • #35
1,123,660 Points 90 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Yes, I know about roommates! But it's a thought ... and could help pay the tab.
9:06am • #36
729,231 Points 15 Featured Posts Outside Blog Called Shot Master

Alan, glad to hear you were quoted in the newspaper. Probably a good long term investment for those who don't want to buy and rent.
9:34am • #37
878,197 Points 223 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Ed - ahh, good to know.

Christine - it certainly could be.

Gabe - and that's exactly what I'm talking about.

Erica - it can indeed.

fggw egwe - buh, bye.

Michael - very probably.
10:50am • #38
551,821 Points 146 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Alan, that's how I got into real estate.  I bought a house to use as a bedroom while I was working on an MBA.  I rented the other three bedrooms to other students, and the rest is history.  It was great!
11:06am • #39
878,197 Points 223 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Mike - sounds like that worked out well for you.
11:24am • #40
155,497 Points 2 Featured Posts Outside Blog

A lot depends upon where the college is, I think. The likelihood that it possibly could be resold to other parents trying to do the same thing for their kids would be something else to think about - increasing resale opportunities. The one thing that definitely should be considered is that paying rent is a waste -that's a given. The one thing with buying - your create opportunity to possibly make money or offset expenses - opportunity has value in my mind.
12:46pm • #41
702,618 Points 55 Featured Posts Outside Blog Called Shot Master

We have similar sales here in NH, i recently sold a condo to a student of St Anselms College in Goffstown NH. They got an incredible deal on this condo and were very happy. In the opast when times were good there was alot more of this but it was nice for it it to make a comeback this year.  Thanks for teh great blog Alan, congrats on the feature,
1:28pm • #42
878,197 Points 223 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Susan - I'm not sure that those who bought condos in 2004, for their children, would agree with you that 'paying rent was a waste'... had they bought, back then... .they'd now be theh proud owners of a condo worth anywhere from 20-40% less than they paid.

Scott - I'd love to see the return of a vibrant condo-purchasing college-bound family.
3:25pm • #43
564,533 Points 10 Featured Posts Outside Blog Attended Rain Camp Called Shot Master


Alan ~ I know foks in Denver are still doing that rather than paying for a dorm room.  In the long run mom and dad get the tax write off, but also save some money when putting their kids through college/
10:02pm • #44
AUG
29
2011
878,197 Points 223 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Dawn - the perfect scenario, assuming you can afford it.
8:46am • #45
225,654 Points 4 Featured Posts Outside Blog Called Shot Master

Hi, Alan...
I was a graduate student at Northwestern in the early 1980s.  No way could my parents have afforded a college condo and I went there on student loans and stayed in graduate student housing (sight unseen).  What a mistake.  I couldn't believe that a school of Northwestern's prestige would have us live in a dump -- but that's what they did.  I won't go into the details regarding the structural, maintenance and health issues that became part of my housing experience.

have a great day!
11:18am • #46
878,197 Points 223 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Eric - I've been in several "graduate student housing" apartments... and while they were "spartan"... I wouldn't call them dumps.
11:58am • #47
567,423 Points 140 Featured Posts Outside Blog Called Shot Master

Back in the hey day daze of real estate I was doing quite a few inspection for parents buying homes for their student children attending school here in CT. Most of these students attended Quinnipiac University. Some of these kids have become real estate investors who call on me a few times a year to do inspections. Its been a steady stream of business for many years.
9:53pm • #48
AUG
30
2011
878,197 Points 223 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

James - that's a nice side-effect, for you!
8:40am • #49
243,126 Points 22 Featured Posts Outside Blog Called Shot Master
In this market, especially in such a tight rental market in my area, I have seen several parents do just that. The "kiddie condo" programs offer no money down options with excellent credit, low interest rates with no PMI AND the opportunity to add the child to the mortgage to give them credit and the parents the tax write off. It can be a win win! Great post.
10:55pm • #50
AUG
31
2011
878,197 Points 223 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Karen - win-win, we like those.
8:24am • #51
SEP
01
2011
465,054 Points 8 Featured Posts Outside Blog Called Shot Master

I like a win-win situation any time!
12:38pm • #52
878,197 Points 223 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Sussie - I wouldn't turn one away.
12:49pm • #53

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Alan May, Coldwell Banker Realtor® Evanston, Illinois & Northern Suburbs

Evanston, IL

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