Campus Cribs: Buying a Home for Your College Student


Colonial has been an expert on “kiddie condos” for years, and has been featured in the Wall Street Journal, ABC News and various other news sites. Below, we’ll look at some of the benefits of buying a home for your college student.A child going off to college is a huge milestone. Not just for the student, but for the parents as well. It’s a time of excitement mixed with a bit of nervousness and uncertainty about what lies ahead. One thing that shouldn’t be of any concern for parents or their college student is their living situation while they are attending school.

We’ve all heard stories about what dorm life can be like. The shared bathrooms that are rarely cleaned or the struggle to find a good place to live semester after semester. Playfully referred to as “campus cribs,” or “kiddie condos,” one of the growing trends across the country is parents purchasing a home for their child while they are attending school. Colonial can help with your home loan needs. In fact, Colonial has been an expert on “kiddie condos” for years, and has been featured in the Wall Street Journal, ABC News and various other news sites. Below, we’ll look at some of the benefits of buying a home for your college student.

Investment Opportunity

Buying a home while your child is attending school can be a sound investment. In recent years, home buying has proven to be a great investment across the country, as home prices increased by 6.3 percent in 2017. According to the experts at Freddie Mac, home prices in 2018 are expected to increase by 4.9 percent. If you decide to sell when your student finishes college, a portion of the profits can help them move into their first home after graduation, or, you can decide to use it as a rental property for supplemental income for years to come.

Rent Rooms to Tenants

One way to offset some of the monthly expenses for your investment property is by renting out extra rooms to friends other students. Things like cable, internet and electricity can add up, but if these expenses, along with the mortgage, are split among three or four people, it becomes much more affordable for everyone.

Increased Responsibility for College Students

Attending college is typically the first time your kids are away from home and “on their own.” They will learn how to balance their social life with their studies, find out which ramen flavors are their favorites and hopefully, grow into mature and responsible young adults. Upon purchasing a home for them to live in during college, they can take on the responsibility of acting as landlord. You can choose to make them responsible for making sure bills are paid on time and maintaining the property (with your ultimate supervision, of course).

Housing Stability

The cost of student housing varies from state to state, but according to the website mycollegeguide.org, the average cost of university housing is between $8,887 and $10,089 annually. Just like the home prices, these costs tend to increase year-after-year as well. Also, because more students are enrolling in college each year, the competition to land good student housing can also be difficult. When you own a home in a college area, your child won’t have to worry about cost of living increases or stress about finding the right place to live.

Campus Cribs with Colonial

If you are interested in learning more about purchasing a “Campus Crib” for your college student, Colonial can help. We specialize in all types of home financing and have been helping homeowners for more than 65 years. Visit the Investment Property section on our website to find out more information. To get started, contact one of our Loan Officers to learn more, or visit GoColonial.com to Apply Today.

 

 

Related Articles

Leave a Reply