August 6, 2021
College Housing Costs
Among the many expenses that come with sending your teenager off to college, living expenses can end up costing you the most; but it doesn’t have to! In fact, there is another option that would allow you to not only invest and make money but give your student life skills beyond their time in college.
If the college campus your student is attending doesn’t require them to live on campus, we recommend you consider the benefits of purchasing a home for your student to live in as opposed to paying over the top rent for a dorm or apartment. Not sure what those benefits are? Let’s discuss.
Knowing that living is already taken care of, eliminates the issue of always having to relocate or find new roommates each year. Especially with class schedules changing and the uncertainty of what summers may look like, owning a home provides stability and assurance that your child will have a place to live no matter what. In addition, by choosing a home for your college student, you have more say in the location and quality of housing that will best fit them and their needs.
With the already high cost of college, buying a house for your college student could be a good way to offset some of the financial burdens. Compare the cost of renting for four or more years. While on the front end you may have to pay a down payment and closing costs, you would end up making as opposed to everything you lost over the lifetime of renting while in college.
Because of that, a home is also a great investment. Instead of losing money to another expense, you are investing your money into something that would likely earn you money when you get ready to sell. Keep in mind that you will have earned equity over time as well. This is especially true for families with multiple students going to school over 5-10 years who can get the most use out of a house for a longer period.
No Need for Storage
Having a place that you own means that on summer breaks or semesters abroad, you don’t have to find a place to store their furniture while they are away. There is no need to break your back moving the same furniture over and over or to fork out loads of money on a moving company.
When you rent an apartment, you are subject to the rising prices of spaces, making it more difficult to budget living and successfully save. However, by purchasing a property with a fixed-rate mortgage there is peace of mind knowing your teenager’s housing will be fixed. As a bonus, you won’t have to worry about a security deposit, and getting that back when their time is up.
You could take this opportunity of purchasing a home and turn it into a very tangible lesson for your college student. At this point in their life, most teenagers have never had to know what the process of buying a house is like. This experience could allow them to not only learn the ins and outs of investing in real estate but will teach them the responsibilities that come with owning a home. You are teaching them how to invest their money wisely and that is well worth it in the end.
When you take all of these benefits into consideration, the possibility of buying a house for your college student vs. renting an apartment or campus housing improves your ability to make or save money and time throughout their time in school. Not only that, but the intangible skills that can come from this experience are ones that you can’t necessarily gain from a classroom. So take advantage of this opportunity!