Offset college expense by buying the ‘dorm’

 

Part 2 of Sound advice for terminal renters

 

HONOLULU ADVERTISER , August 28 2005

BY LISA SCONTRAS

Custom Publishing Group

 

Housing for students, on and off campus, can get expensive — especially when multiplied by four years. With today’s continued low interest rates, coupled with parents who are looking for a way to offset tuition fees, it makes more and more financial sense to buy a home or condo for college housing as an investment rather than burn dollars on dorm fees.

 

Following the same principals of paying a mortgage and building equity for themselves rather than putting money into someone else’s pocket, parents are educating themselves on their financial options where college housing is concerned.

 

Of course, as with any investment, your strategy will vary, depending on your financial goals, the college your student selects and market conditions in that neighborhood, but the benefits are definitely worth considering.

 

Conceivably, you could buy a small house and rent out the additional rooms to other students, possibly creating cash flow. You may even elect to continue renting to students even once yours have graduated. Some parents may opt to include the child’s name on the loan — taking advantage of first-time homebuyer loan programs as well as teaching the student about the responsibility of homeownership.

 

If your son or daughter decides to go to school on the Mainland, buying a home there may even satisfy residency requirements. And, if there is a shortage of off-campus housing, it may be a good investment even if you don’t have a student entering college.

 

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