This is not a new trend but many parents are not taking advantage of the market.
Looking into home investments for your college bound children.
Rents for apartments and homes have gone up while at the same time real estate prices have come down.
If your budget permits you to be creative, I would like to suggest a way to provide a place for your child to live while in school and position yourself in a market that is more attractive for buyers at this time.
JUST A THOUGHT
College Children rents for 4-5 years ( hopefully). Avergage cost in Oregon $45,000 roughly for a single bedroom appartment. This could very well go up over the next few years, I honestly do not know. But for 5 years that is a chunk of change.
Investment property could be a very nice solution instead of throwing money away on 4-5 years of your childs housing with no return at the end. Consider the purchase of condo or house close to your childs college.Recruit a roommate to help offset the cost of the mortgage. Yes there will be extra upkeep on the home but that can be sorted out between your child and yourself. If it can not be worked out then you will have to factor in that extra part. As the owners of the property, you can write off mortgage interest costs to provide a wonderful tax benefit (Talk to you tax advisor for information on how much you can write off.)
CONFORMING - (up to $417k)
30yr fixed 4.875% (5.060apr) - Owner-Occupied purchase or rate/term refinance
30yr fixed 5.500% (5.729apr) - Investment Property
15yr fixed 4.750% (4.940apr)
3/1 ARM 4.600% (5.023apr) - fixed for first 3yrs
5/1 ARM 5.100% (5.536apr) - fixed for first 5yrs
30yr FHA 5.000% (5.439apr)
JUMBO - (over $417k)
30yr fixed 5.875% (6.136apr) - up to $600k at this rate, slightly higher to $3.0mil
5/1 ARM 5.100% (6.111apr) - up to $750k with no mortgage insurance
Best to you and yours.
Timothy Butterworth
Real Estate Broker
Corporate Office
215 SE 102nd, Suite 300
Portland, Oregon 97216
503-960-4589 Cell
503-287-3417 office
503-287-4657 fax
timothybutterworth@comcast.net
LICENSED IN THE STATE OF OREGON
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