| Parents buying university homes for children |
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financechoices
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| Parents buying university homes for children |
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With student rents rising more than ten per cent in each of the last three years, parents have been advised to invest in buy-to-let property for their academically minded offspring.
As students prepare for their A-Levels and wait for results, their parents should be doing their own homework and investigating property for them to live in at university, according to property investment specialist Assetz.
"University towns have enjoyed big rent increases over the past five years, and with Government incentives to boost student numbers to 50 per cent of all 18 to 30s by 2010, this growth rate looks set to continue. What's more, students now expect to pay rent for a full year, despite the fact that the academic year is only about nine months long," said Stuart Law, managing director of Assetz.
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Does this sort of thing happen in the US too?
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Mon Jul 04, 2005 9:57 am |
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xboxundone
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yes this has been happening a lot. The only big risk is for the parents Especially if you kid is a partier MY parents bought a home for my brother and rented it out to his friends and my brother to cover costs (my bro was rent free) Needless to say after a year the house was in terrible shape and my parents were PISSED!!! so needless to say when i went to college I asked them to do the same for me and of course they didn't....
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Mon Jul 04, 2005 4:35 pm |
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MattL
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I know people that have done that and made out well. They actually made money on the college housing after four years.
They had girls though that took good care of the places and didn't trash them like some guys do.
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Wed Jul 06, 2005 12:14 pm |
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bigp
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Yes, it does go on here in the states. University towns are often pricier then others. There is always a demand, thus justifying the higher prices. I wish my parents had thought of buying me a place - they could have paid off all my debt by the time I had graduated by the price increase. Hindsight is 20/20 I guess.
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Wed Jul 13, 2005 5:51 am |
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financechoices
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quote:
Originally posted by bigp
Yes, it does go on here in the states. University towns are often pricier then others. There is always a demand, thus justifying the higher prices. I wish my parents had thought of buying me a place - they could have paid off all my debt by the time I had graduated by the price increase. Hindsight is 20/20 I guess.
Do you think you'd have learnt as much about finance if your debts had been wiped out quite so easily?
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Sat Jul 30, 2005 3:46 pm |
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bong12187
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| Re: Parents buying university homes for children |
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[quote="financechoices"]With student rents rising more than ten per cent in each of the last three years, parents have been advised to invest in buy-to-let property for their academically minded offspring.
Setting aside everything except for the financial question, I would definitely recommend buying a home rather than having the kids stay in dorm or rent. After 4 years of college, you can sell it or have it rented. You can't beat the yearly tax incentives that comes with it.
In other places like AZ, my coworker found out that his kids can't become AZ resident unless they have tangible asset there. This means that he is paying higher tuition. Additionally, he is paying for their dorm (2 kids) which is an equivalent (or higher) than if he would have bought a house earlier. He ended up buying a house after one year.
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Mon Aug 01, 2005 4:40 pm |
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Ellis
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purchasing an investment property in a univ district is usually a lucrative deal and I hope to be owning a investment property next summer if the right type of property comes up for sale.
If you have any mortgage questions
or need help with a loan you can contact me at: EllisJackson@rhmbanker.com
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Tue Aug 23, 2005 3:24 pm |
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