Ted Jackovics of the Tampa Tribune published an article on November 19, 2008 that caught the eye of a couple of my fraternity brothers living in Sebring, FL that they immediately forwarded to me.
The title of the article would catch any Ohio "snowbird's" and reads:
"For Real Estate, Akron Ranked No. 1 In This College Poll"
Well, if you're from the Akron a poll that ranks Akron #1 is something that will catch your eye.
The article was based on a Coldwell Banker ranking that points out that The University of Akron is the top ranked college town for affordable housing. According to the article:
The five most affordable college markets for home prices fitting that criteria range from $135,780 to $155,000 are:
- The University of Akron (Ohio),
- Ball State University (Muncie, Ind.),
- Texas Christian University (Fort Worth),
- The University of Tulsa (Okl.) and
- University of Toledo (Ohio).
The five most-expensive college markets: (average prices from $1.1 million to 1.7 milion)
- Stanford University (Calif.);
- Boston College;
- The University of California,
- Berkeley; University of California, Los Angeles; and
- The University of Southern California (Los Angeles
It is not uncommon for some parents to have an interest in purchasing a home that can be used by their children who attend college at a distance from their home base as investment property and, according to this article, parents can get the best buy in the Akron area.
The cost of housing at most universities is expensive and that cost will be there for anywhere from four to five years; maybe more depending on the age of your children.
Is it a good investment to buy a home in a college town to use as housing for your college student? I think it is since you can treat the property as a rental and take advantage of deductions. In addition, if you have property that can be used for student housing, you will be able to take advantage of the rental income it will produce to offset your costs.
Your student will have housing costs whether you invest in property or not. Owning rental property in your student's college town will help offset that expense and return revenue to you in the process. You can either elect to hold on to the property after your student graduates or put it back on the market and hope to get a return on your investment.