Purchase your childrens college living space instead of Renting for years.

The only problem with this is if the child changes schools during his/her college career.  My son went to one school and played ball for 3 years and realized he was not going to be able to go pro and took a year off attended community college to pick up the courses he had missed while traveling for sports and then went to another school (with a scolarship) to finish the last 2 years. I did consider purchasing a house near the final school but he was only going to be there for 2 years. 

Hi Tim

As a home inspector in the Boston area I've seen this trend for years, and always though of it as a great idea. Here in the most densly packed concentration of colleges and universities anywhere in the US, rents for college student occupied apartments run $1500 to $2000 a month. Using the lower figure of $1500 that works out to $72,000 for a 4 year period to complete a Bachelor's program.  And of course, all that rent money is gone forever. I've seen smart parents buying small houses and condo apartments for their college age children, and selling the places after their kids graduate. Most have made a profit, some broke even or lost a small amount of money, but nobody took a hit like the parents paying rent. Even with most of the houses in the Boston area losing value, the condo market has actually continued to rise in reverse of the overall trend. Right now there are bargains galore to be had all over the neighborhoods near the public transportation (T lines) system that carries thousands of students to their colleges and back every day. So, if you know someone with a kid heading off to college in the Boston area to one of our 38 schools, tip them off to this idea.  Jim Morrison, owner, Home Authority of Massachusetts Home Inspections (jimmorrison53@hotmail.com)

This can be a great situation, but you better look out for some possible problems.

1. Make sure that your child is willing to live in the place that you choose for the entire time they are in college.  Are you willing to make them stay in one place to protect your investment when all of their friends are in a different location?  Also remember that less than 50% of kids actually graduate from the school were they start their education.

2. You have to be willing to treat the renters (roommates) as tenants, not as friends.  If your child is not capable of making the hard decisions necessary to manage a $100K+ investment you should consider a management contract with a good management company (at a cost of 10%).

3. Be aware that college kids are not really good tenants (maybe even your own), because they have never had to take care of a place before.

4. Consider the summers.  Most kids don't plan to be at school during the summers and if they don't come home, you might have to pay rent somewhere else.  Are you going to be able to make your kids roommates pay for the months when they are not at school?  Will the unit be okay if it is unoccupied?

5. Most college towns have a fixed 12 month schedule so if you want to sell mid year you might have a problem.

6. Do you really have the expertise to choose a good house or condo?  A mother's instinct is not always the best way to choose a college condo or house that will suit a kids needs for .the entire time they are in college.  Changes in a college market can be pretty dramatic for reasons that are very hard to predict and often do not match conditions in other real estate markets. For example, the addition of a large apt complex or a change to the college bus routes can have a dramatic impact on student housing in some communities.

7. Is this going to be an investment for you or your child?  Their willingness to help with this process could be dependent on this answer.

8. Can you really afford this?  Make sure that you really understand the true cost of sending a kid to college.  I have yet to meet someone who over estimated the cost to send a kid to college.