Student housing is one of the biggest expenses a parent will pay while their child attends college. With quality, near-campus rentals starting at close to $500 a bedroom ($6000 a year) or higher, renting often feels like money being thrown away. Purchasing a home is an investment that pays for itself. Rental payments from your student’s roommates will also reduce expenses even more… many times allowing your student to live for free! By purchasing a home, you can not only pay for your student’s housing, but sometimes make money in return. Below is a sample financial analysis that shows some of the many economical advantages to purchasing a home for your student, and even future students.
Sample Financial Analysis
*Based on a mortgage for a four bedroom home priced at $150,000 with a 20% down payment and a 4.5% interest rate
Property Purchase Price $150,000
Down Payment $30,000
Mortgage Amount $120,000
Monthly Rental Income
Rent per Bedroom $450
Number of Bedrooms x4
Total Monthly Income $1,800
Less Estimated Expenses
Mortgage Payment $608
Taxes and Insurance $295
Total Monthly Expenses ($903)
Annual cash savings vs. Renting $10,764!
Now that we have seen the many perks of owning property, lets discuss the benefits of a home versus an apartment. Some of the newest apartment complex rates in Bryan/College Station are around $700-950/room for 2 bed/2 bath and $560-830/room for 4 bed/4 bath. These figures include complexes such as the Rise, the Stack, the Cottages, U-Club, and Callaway Villas. Homes can be less costly, safer, and more tenant-friendly than apartment complexes.
Other advantages of living in a house include:
- Closer parking to your front door
- Yard space for barbeques or animals
- No sharing walls with noisy neighbors
- Quieter environment for studying
- Stable monthly expenses with no rent increases from year to year
- No worries of signing a lease and moving every year
- No property management conflicts
- Tax advantages
With all of these advantages, doesn’t owning a student home make more sense? I work with parents year round and would love to help you put your rent money to better use. Simply click here to reach me, or call me at (979) 218.3905.
