Wednesday, August 25, 2021 / by Ken Couture
Homeownership may offer more long-term benefits to students than a dormitory, so parents help their students buy a house in the city. Real estate experts told Bankrate.com they see this long-standing trend developing.
Buying a home for their older children while in school can cut costs and be a sound investment.
Jeffrey Decatur, a real estate professional at RE/MAX Capital in Latham, NY, told Bankrate.com he first asked a parent client to buy his freshman home because of college. Students are not allowed to have a car. Parents buy a house for their children to keep the car. But then he began to notice the trend more, especially among medical and law students. "Their parents want to make sure they have all the benefits and that they don't get distracted by other things when they get to school and that they have a place to focus, be quiet and study, etc," Decatur said. with Bankrate.com.
Decatur says students can pay around $6,000 to $7,000 per semester — or $14,000 per year — for accommodation and accommodation. So one of his clients used that $14,000 per year to invest in a three-bedroom house for his student. They rented two of the rooms for less than what the university charged. When students graduate, parents can rent or sell the house.
Also, “if your kid’s taking out student loans, you’re not financing their living,” Decatur told Bankrate.com. “You’re taking $60,000 of debt out of the equation to your kid turning it into an investment.”
However, it is the parents' duty to sell or rent it out when the adult children graduate. In addition, they must trust their children to maintain the property. But the potential cost savings and a more private place for their adult children could be worth it for parents.
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