Skip To Content

How Can You Turn Your Kid’s College Stay Into an Investment?

By buying a home for your child to live in during their college stay, you can turn what would’ve been a large expense into a lucrative investment.

Looking to buy a home? Click here for a full home search. 
Looking to sell your home? Click here to use our free home evaluation tool. 

Summer is officially over and school is in full swing, meaning college football season is right around the corner for us SEC fans. In north Alabama, this means there’s one consistent question everyone asks: “Roll Tide or War Eagle?”

Wherever your loyalty may lie, family ties to alma maters run strong here in the south, with many students deciding to continue their generational tradition when picking where they want to attend college. For most parents, sending your child off to college requires hours of preparation, a few kleenexes, and a substantial amount of savings. With tuition bills, book fees, everyday expenses, and more, a single semester can cost you several thousand dollars multiplied by however many years it takes your child to complete their degree.

For many parents and students, this begs the question, “Where and how can I stretch my dollar?”

One of the largest expenses of going off to college is housing, with the average cost of a dorm ranging from $10,000 to $11,000 annually, according to The College Board. With rent options often being cheaper than dorm fees, the majority of students decide to live off-campus after their freshman year. With bachelor degrees taking four or five years, or longer, to complete, some parents are opting to see if they can make the most out of their money by buying a college condo or a single-family home for their child rather than letting them rent.

Purchasing—rather than renting—can turn your dollar into an investment. This can also provide you and your child with a sense of stability and additional income.

In this scenario, we most often see the parent purchase a 2- to 4-bedroom home for their child to stay in during their college years. Most college kids don’t want to live alone, so they end up recruiting their friends to rent out the rest of the rooms in that property. This means they’re covering the note for the mortgage, cash flow is positive, and they’re not paying rent for their kid’s dorm room.

There are other additional perks we’ve seen our clients and friends utilize through this arrangement, including:

  • Having two people share a room so that one room stays available so you have a place to stay when you visit.
  • Eliminating the additional $500 +/- pet deposit.
  • Not being stuck with your child’s pet after they graduate high school.
  • Having the ability to upgrade the safety features of the property as you wish.
  • Since their name is on the mortgage and deed with you, you can help your child build their credit and equity as they transition into their own careers.

In and around the majority of Alabama universities, most of the value of a condo or single-family home boils down to its location. Students often desire the ability to walk to class so they can eliminate parking fees and be near the action during a home football game. With the right location, your investment property could grow in value. Inventory in prime locations, though, is hard to come by, so buying a condo or single-family home for your child’s college stay requires the same amount of planning and responsibility as any other home purchase.

However, this is definitely a conversation worth having, especially if you’re like me and have children who are close in age and will likely choose the same university to attend.

If you or someone you know is interested in buying a condo or single-family home near university locations in Birmingham, Auburn, Huntsville, or Tuscaloosa, give us a call or message us online. We’d be happy to help you get started.  

We want to extend a very special thank you to our clients and friends in the community who dropped by our office to donate to our Hurricane Harvey Donation Drive.  The event was a huge success due to your generosity.


This Week’s Closings:

  • Cornerstone Communities, LLC
    Mr. and Mrs. Walter Johnston II
    Ms. Heather Jensen
    Mr. and Mrs. Gregory Johnson
    Mr. Steven Davidson
    Mr. Kyle Ray
    Ms. Lacy Hollaway
    Mr. Jeremy New
    Ms. Rachel New
    Ms. Amanda Hoffman
    Mr. Brandon Reynolds
    Mr. and Mrs. Joseph Childress
    Mr. and Mrs. Terrence Cunningham
    Mr. and Mrs. Brian Kirkland
    Ms. Brittnie Letson
    Mr. and Mrs. Frederick “Trey” Brouwer III
    Ms. Amber N. Peebles
    Mr. and Mrs. Christopher Charnell
    Ms. Jacqueline Mary Drew
    Mr. and Mrs. Troy McKinlay
    Mr. and Mrs. Nathan Lewis
    Mr. and Mrs. Robert Dixon
    Mr. David Champigny
    Ms. Virginia Gilchrist
    Mr. and Mrs. Jason Boughner
    Mr. and Mrs. Timothy Bennett
    Mr. Emmett McCutchin
    Ms. Judith Jones
    Mr. Dylan Barros
    Mr. and Mrs. Stephen Ayers
    Mr. Gary Ikerd
    Ms. Christy Metzger
    Mr. and Mrs. Greg Moore
    Mr. and Mrs. Keith Gannon
    Ms. Lori Coy
    Mr. Gary White
    Mr. and Mrs. Jessie Parnell
    Mr. and Mrs. Chad Thomas
    Mr. and Mrs. David Castro
    Mr. Eule Glenn
    Ms. Kelsey Shaneyfelt
    Mr. and Mrs. Craig Paulus
    Mr. Brian Flint
    Mr. and Mrs. Mark R. Stermer
    Mr. and Mra. Van Reese Davis

Trackback from your site.

Leave a Reply



About our blog

Follow our YouTube Channel and +1 us on Google Plus!



Contact Us Now