Sending a child to college elicits many emotions. It is an exciting, yet somewhat stressful and expensive, time of life. After choosing the college or university, the next big financial decision is selecting the best student housing option for the next few years. Lori Blad, with Monument Realty and LB Luxury Homes Group, encourages parents to turn this short-term decision into a long-term investment.
“I have two daughters in college and the expense of sending a kid to college is very real and at the forefront in my world right now,” she shared. “When looking at mortgage payments versus rent for four-to-six years, the amount is significant.
“Because nothing grows in value like real estate, why not buy a house that grows in value during that time and make those expenses work for you.”
Purchasing options vary from studio apartments to multi-bedrooms homes with rooms that can be rented to other students and generate income. Additionally, by purchasing a residence, parents can ensure their student lives in a safe location and does not have to move out each summer or live in a different location year after year.
The short-term peace of mind of having a stable living arrangement organically transitions into a positive long-term financial investment.
“If you bought a $200,000 home and put $40,000 down, in six years you have $70,000 of equity in that property,” Blad explained. “Then, you can do a lot of things with the property; you can keep it as a rental and an income generator, you can continue to have your child live there if they don't move away, you can refinance and pull cash out to finance something else, or you can sell it.
“There is no other scenario where you can put money while your kids are in college that is going to support them and grow in this way.”
Prior to purchasing a college residence, Blad says to research finding a property that is not only in good condition and in a safe area but is also within close proximity to campus. Having property near the school ensures a higher rental rate for any additional student renters with a lower occurrence of vacancy due to the elevated demand. It is also a great selling point when it comes time to put the home on the market for resale.
In addition to joining online community groups of parents connected with the college or university, Blad suggests connecting with a trusted real estate agent who knows the area well.
“Your local realtor can recommend someone who could help in most areas,” she said. “I have so many networks that I'm part of, both nationally and internationally, that it would be easy for me to connect someone with a realtor that specializes in an area where their kids go to school.”
Blad loves helping people find a little piece of Texas to call home. To connect with her, visit loribladluxuryhomesgroup.com, call 214-498-7879, or email LoriBlad@gmail.com.
"Nothing grows in value like real estate; why not buy a house that grows in value during that time and make those expenses work for you.”
