Purchasing A Home Near Campus: A Good Investment or Not?
According to a recent survey from Coldwell Banker Real Estate, 40 percent of the company’s agents have seen an increase in parents buying homes for their children to live in while attending college.
For the majority of people, purchasing a home is one if not the biggest outlay and commitment made. Even so some parents, with the means, help their post high school children by purchasing a home near campus as it is convenient for their children’s higher education. This is a boost until your offspring graduates since it can reduce travelling time, giving more time for focusing on learning and more safety if less travelling. Also any extra rooms can be rented to other students and this may even offset your costs. You may have some reassurance that your offspring can call out any inappropriate use of the house and keep an eye out so that others don’t wreck the place.
Purchasing a home near campus could also be a good investment when after graduation in three or four years’ time, you may consider your options to sell up. You can cash in a profit if selling prices have increased or you may conclude that having an additional room to rent will make for a continuing good investment. Either way you will have likely made a good investment and by then you will have options that should put you in a win-win situation.
Experienced, well informed, savvy real estate investors however will not only consider capital gains, higher rents but also the risks involved when purchasing a home near campus. Some downside of purchasing a home near campus would be:
School Relocation – if the school can no longer accommodate kids due to limited rooms and there’s no way to add more rooms and buildings. The school will ultimately be relocated to a bigger area. So purchasing a home near campus is not a good idea. That is why you need to research first before purchasing a home near campus.
School Reputation – parents will always opt for a school of good reputation if given the chance. Poor quality of the school will affect the property value of the house you purchased.
Consider all the options, the pros and cons before purchasing a home near campus. If you are definitely positive with the return of investment and all the risks involved is being considered then it is a sound idea to purchase a home near campus.
If you are looking for a home near campus or considering in purchasing a home near campus and you need some advice, do not hesitate to call us at 678-408-2228.