Many parents are nervous when it comes to buying a student home. While already investing in your student’s education, it can be concerning to make another big financial decision. Here are some simple reasons why purchasing a student home can be easier and more beneficial than it seems. Below are a few concerns I feel many parents’ have regarding student housing.
1. How will student housing affect me financially?
Let’s look at two hypothetical situations.
1) After living in the dorms, your student decides to rent and moves to an apartment complex. You pay the complex $500/month rent for three years, as well as a $50 application fee, and $150 in maintenance charges. That is a grand total of $18,200 spent, that you will never get back.
2) Now suppose you purchase a home for your student and three roommates. If the roommates live in the house for three years, and each pay $500/month, you will receive $18,000 a year in rental payments for a total of $54,000 at the end of the three years. A well maintained home should not depreciate over three years. In fact the odds are much greater that you see the value increase during that time, as homes in College Station have a high appreciation rate.
Further, once your student graduates, let’s say that you sell your home for $10,000 more than the original purchase price. That’s a $64,000 gain….for simply renting out your home and providing basic home maintenance.
2. How can I make sure my student has a safe and maintained living situation?
Have you had trouble with previous landlords? Are you concerned with how their property is being managed and maintained? Owning your own home means you can take control of these issues yourself. You won’t have to leave maintenance to a questionable source, and can be assured that your student’s home is well kept and worry free.
3. What are the benefits of buying instead of renting?
Just a few of the many benefits of buying include:
- Saving money on student rent
- Making money on renting other rooms
- Quality living space, no noisy neighbors
- Location of your choice
- No parking garages or crowded lots
- Convenient and hassle free
- Tax advantages
For more detailed information, check out my previous blog on buying vs. renting. To summarize it, many apartment complexes have high rates for amenities that 1) are not used very often, and 2) are many times crowded and rowdy. Don’t be lured in by the “luxury swimming pool,” and suffer crowded parking lots, high rent rates, untimely maintenance, and noisy neighbors. Instead, purchase a home of your choice that fits your student’s needs.
4. If I do decide to purchase a home, what would I do about lawn care, and other home maintenance necessities like plumbers or painters?
As an investment property owner myself, real estate broker, and College Station resident for almost 20 years, I am always happy to make recommendations for my clients. I have a variety of trusted lawn care, plumbing, painting, air conditioning, and many more professional services that I use on a regular basis. As your realtor, I am always available as a trusted resource.
I hope this guide can help relieve many of your home purchasing questions. As you can see, purchasing a student home doesn’t have to be complicated.
