The costs of living on college campus are soaring. So are the rents in apartment buildings located near college campuses.
According to The College Board, room and board on campus can average $11,526 a year for a private, non-profit four-year university. It’s only slightly cheaper at $10, 138 a year for an in-state, public four-year college.
As each new college freshman class grows, so does the demand for off-campus housing near college campuses. Property management companies are capitalizing with higher rent costs and new developments. These expenses add up quickly over four years.
This is why many parents across the nation are buying property for their college students. They find the investment can have real financial benefits for them, eventually turning a profit. They earn equity, eliminate landlords issues, and the purchase can be classified as a second home.
“Our Family Opportunity Loan allows parents to buy their college student a home and treat it as a second home,” says A. Wade Douroux, President and CEO of Resource Financial Services. “This offers the same pricing as owner occupied, with 90% financing.”
“Plus, investing in rental property in a college town can be a good idea if the area is home to large populations of two key demographics – college students and retirees,” Douroux explained.
Is buying a property for college students a good move for you? Here are things to consider:
Locality and Demographics. Talk to a Realtor to understand the population, property values and rent payments in the area. Make sure the area is safe, and convenient to campus, grocery stores and other necessities.
Determine affordability. Your mortgage banker can help you determine the cost of renting for four years versus buying, helping you take everything into consideration.
Plan ahead. Know what you’re going to do with the home once your student graduates.
Discuss loan options with a Mortgage Banker. You can take out a second mortgage, or take advantage of Resource Financial Services’ Family Opportunity Loan, which can be used when an immediate family member is the occupant of the new property.
Talk to your Resource Financial Services mortgage banker about the finance options that are best for you. We can recommend a Realtor who will be able to give you extensive information about the current conditions and history of the local housing market as well as the demographics of the area.
Resource Financial Services exists to make people’s dreams of home ownership a reality. Our experienced mortgage specialists work hard to educate homebuyers about the wide variety of loan programs that can be tailored to meet individual financial needs. Homebuyers can expect quicker closings, same-day pre-approval, 5-Day Processing and guaranteed lower rates.
We’re excited to help you find your home, find your loan and get cash back. Start searching for the home of your dreams online at rfsmortgage.com. Call toll-free at 877.797.4545 to speak with a mortgage banker.