Your college freshman is about to move out and go off to college. Often, there’s a lot for the parents and student to figure out financially: Tuition, meal plans and, of course, housing. We help families every semester to find homes to buy while their kid’s in college. We’ve got tips and advice for parents who are considering buying a home for their 4-year university student, and why you should do it!
Being in College Station, aka Aggieland, we have helped dozens of parents purchase a condo or house for their Aggie student.
A dorm or a house for students?
Typically, college students in Bryan / College Station pay $500-$650 for a rented room. In our market, you can find a single-family home or townhouse for around $200,000, so it make sense to buy a home around this price.
Why is buying a home for your college student the way to go? Because your college kid’s roommates’ rent will pay for the mortgage, taxes and insurance for four years– We find that most parents can rent it out to their college student’s friends for a few more years after their student graduates, so on average, we see parents being able to rent the home out for 5-7 years. Depending on the average appreciation rate of your area, this is usually a better return than investing in the stock market!
Renting means paying for something that you or your student will never own. There will be no return on renting an apartment or dorm room. When your student graduates, and if you don’t have another child going to the same university, you can either continue to rent out the home, or you can sell the house.
What to look for when buying a home for your student?
Location, location, location! The closer the house is to the university the better; you can’t lose if you are within walking or biking distance to the university or along a bus route for the university. Also, make sure that the HOA fees are not an astronomical price monthly.
Learning from parents who have bought a home for their college students:
If you are a parent who has a child going to college or university as a freshman, considering letting your child rent for the first year. We have had parents who have bought homes right away and their student decides soon into their first semester or year that the university (or their major if it is specific to that college) is not for them. Occasionally and unfortunately, sometimes their kid flunks out, leaving the parents left with a home in an area they no longer have a tie to and no longer have easy access to connections to rent it out.
Ultimately, it is a great investment for parents to purchase a home or condo in the town their child is going to college. Call us, we can make the process smooth and easy! We helps many Blinn and A&M parents find great homes for their students. Gig ’em!
Equal Housing Opportunity. Equal Opportunity Employer.