Sending your child to college is expensive and room and board is the second highest expense for college students each year. As you weigh your financial options, consider a few pros and cons of purchasing property for your child’s use while in college.
It’s best to think of a second mortgage as a long-term investment, as some statistics suggest that significant profits begin into the seventh year of ownership. Since most students will complete their education within five years, consider whether you’ll be willing to do maintenance and updates to the property after your child has graduated and moved on. Ask yourself if you’ll be in it for the long haul.
Preparing Your Budget
Rental income from student friends can help pay the mortgage, but tax rules for second mortgages can be tricky. Be sure to consult a tax professional before purchasing property so your budget is realistic. Housing markets fluctuate, so how a property will hold its value is unknown. Keep your profit projections for your budget conservative to start and adjust as you go.
Consult A REALTOR®
The best place to start finding the ideal location for your rental is with a real estate agent. Mel Foster Co. agents are experts in market conditions and communities. As part of a global network called Leading Real Estate Companies of the World, you can find that second home anywhere by starting with your local agent.
Connect with a Mel Foster Co. agent near you.