Buying investment properties located near the universities and college towns may be a good idea. Buying condo for college students may work, after all, you can rent it out once he finishes or resells it.
When you write a check for your son’s college dormitory, buying a condo came to your mind. You plan to buy a condo instead of renting off campus or renting at the university housing. But before making a decision, is buying condos for college students a good idea?
Buying Condos for College Students, Is It a Smart Move or Not?
Buying a property isn’t easy at all, just like buying any real estate investment risk comes with it especially you are impulsive and not doing your research. Before deciding, be aware of the current and the future market, maybe like four years from now. That is if your son will finish university four years from now.
You have to answer the following issues: No. of years your son will finish his college; current rental rates off campus; how much you will get from reselling?
Do you know that majority of students don’t finish in four years time? According to National Center for Education Statistics, only thirty-nine percent finishes within four years. 59% graduate between five to six years. You have to compute how much will it cost to sell the condo after four to six years.
Another factor is how well he maintained the condo unit. Some college kids are irresponsible that they don’t care about the unit, causing it to deteriorate. This affects the resale value of the condo unit.
Compare the current rental rates off campus and on campus against the cost you will pay for financing a condo. You can consider sharing the unit by renting it out to another student together with your son. This way you can offset the cost you are paying for the monthly installments.
If you plan to keep the condo for an extended period, your option is to pay a higher amount for down payment to counter the effect of interest increase and keep the monthly amortizations lower.
What Are the Benefits of Buying Condos for College Students?
Large Rental Market
There is a large market for renters in a college town. Every year or semester new college students need a place to stay. If you plan to invest at North York Condo Life, the area is ideal for college living.
The housing market for universities is stable. Other parts of the market may have a declining market but not the college real estate market.
Not Much Marketing Required
You don’t have to spend time looking for renters; the market comes to you directly. There are amenities in the area like culture and entertainment, food and shopping and ease of public transportation.
Little to No Vacancies
The higher the demand for college rentals, the fewer vacancies there will be. Also, make sure to provide a conducive place for learning. Keep the interiors minimal and simple. Offer services like housekeeping. This will ensure your unit to rented most of the times.
The biggest benefit of buying condos for college students is the idea of your son living comfortably while striving hard to finish his studies. Do your research before making a big decision.