More and more parents are getting smart and purchasing investment properties in cities where their children are attending college. I have seen this trend increase for many reasons.
For starters, their student has guaranteed housing for as long as needed and their expenses or rent is always known. Another great advantage is there is no need for storage or moving belongings during the summer or in between sessions.
The parents are not only teaching their child responsibility, they are laying the groundwork for becoming a homeowner or an investor. Not to mention their child can also earn income by managing the property. This spells tax breaks for their parents.
Some options are single family homes and finding responsible roommates or even better, multifamily units where the student lives in one unit and the other units are rented out and covers most, if not all of the mortgage payment.
Generally, real estate appreciates and holding a property for 4 years or so could turn a profit. The equity or profit earned once sold, can go toward the student's down payment or investment in another property. Purchasing a property for your college student not only makes sense, in the long run you will probably come out cheaper than renting.
Make sure to do your homework and learn as much as you can about the college town and neighborhoods.
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