The sun is slowly setting on the dog days of summer and quickly rising on back-to-school time. For those of us with little ones, that means stocking up on notebooks and pencils (and fashions!) all in the name of investing in our children's futures. For those of us with older kiddos heading off to college, this time of year means a house to ourselves (both a blessing and a weepy curse), tuition bills (yikes!), and last minute calls for rent money.
While those first two may be inevitable, the last one is not only avoidable but an opportunity for parents to make a smart investment. Purchasing an investment home is sometimes a gamble...unless you're buying in a college town. And you have a college-aged son and/or daughter to be your guaranteed tenants!
Still not convinced buying a home in lieu of paying inflated rent for your college student is an A+ idea? These 3 Reasons To Buy A Campus Property speak for themselves.
1. Dependable Income Students expect to be sharing a living space with multiple room mates to cut down on costs. This is music to any landlord's ears, but it can also be a source of stress and strife. Between collecting rent and maintenance issues generated from multiple tenants, many landlords begin to live by the creed: the more the (un)merrier.
But when your son or daughter is one of your tenants, he/she becomes the "landlord" advocate. Think of the phrase, "My mom would kill me if I did that!" And then image it being uttered every time someone suggests setting up a Slip-N-Slide in the hallway. With your kid on the job/lease, your income property is just that. All the income, none (or less) of the stress.
2. Fixed Housing Expenses Every year housing expenses go up for students here in Ann Arbor. Every. Year. I's an unavoidable reality. Unless you own the house your student is living in. Your investment property's monthly mortgage payment will remain consistent for the life of your loan, making student housing expenses a fixed cost instead of a fluctuating one.
3. Retirement Plan College graduation is a huge turning point in your child's life. They're moving on to new, exciting opportunities. You should be too! Retirement can seem like a far off dream, but it's closer than you think. Especially, when you have an income property that will continue to cushion your 401K long after the kids fly out of the nest. Buying and selling at just the right time can kick your retirement plan into high gear from dream to reality.
Warmest,
Nancy
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