For parents, paying for college is a huge financial burden that they typically help carry for their children in order to ensure they have the best future possible. What's more? If your child has a "dream college" that doesn't allow for a home commute, those dorm fees can skyrocket that education tally. Some have come across this find, but for those unaware - have you considered purchasing a home to save on those dorm fees?
To be clear - this is not the "end all, be all" of avoiding dorm fees for your child's college stay, some areas, such as Seattle, College Station, and Ann Arbor do not offer a bargain for homebuying...in fact, it's quite the opposite.
But for those that can obtain the sweet-spot of finding a college in an area with affordable living, a good housing market, and those with great credit, will be able to not only save by purchasing a home and create an income property after their children are done with school. Here are a few points to keep in mind.
- Keep location in mind. If your student has a car, or the ability to commute, being right outside of the college's area could save you a lot of money.
- Find a good balance between "luxury" and "foreclosure." Something that is too expensive may not warrant many takers if/when you decide to sell the home and a foreclosure home may mean that the area doesn't have a lot of buyers.
- Stay within an income property mentality. Your student won't be in college forever, so it may be wise to take small updates into consideration, as well as research how popular it is for other college students to rent homes instead of pay for a dorm, for later semesters.
- Are you planning on visiting your child often? Do they have siblings that are going off to college soon, or even a group of friends going to the same college? It may be worth your while to look into larger home, with multiple rooms to rent out for fellow students or for you and your future students to stay.
Is buying a home instead of a dorm right for you and your children? Contact Mortgage Advisor to get more information and find out what loan option is right for you!