Jul 30, 2016 07:45 AM EDT
College Condo? Dorm Or House? What You Need To Do For Your College Student
In the United States, many young Americans are gearing up for college but there is one necessity that even parents are looking into before they get shipped off to face college campus life.
Parents need to find out if they want their child to stay inside the school or invest in another type of real estate. Is the investment in a condominium even worth the risk?
Aside from a college or university tuition, the cost of living is also something parents and future graduates consider. Living in a college dorm can rack up an average of $10,138 to $11,516 every year - just for a room and board. With that same amount, reports indicated that you can get the same deal in buying a condo instead.
Are you now considering to have your young adult live in a condo during the duration of college life? Not all parents can make this move but some do buy their children a small home or a condo to live in while they are studying in college.
On paper, it's a lovely strategy," says Beth V. Walker, a certified college planning specialist with the College Funding Coaches and a financial planner with The Wealth Consulting Group in Colorado. That is what Real Estate US News talks about.
Before you say "Yes," find out the risks first. Such as if your student decides to drop out and transfer after a year, what will happen to the condo? Realistically, 4-6 years in college is a short time for a real estate investment. The future of the market is unknown. "You're talking about a lot of capital in a four-year period of time, or today's world maybe six."
If a condo is not within your sights, look out for a single-family home instead that is near the city center. Or maybe buy a rental property as another investment plan. Buying a condo could be an option but with the high cost of education, it is wise to check on how to better invest your money when it comes to real estate.
Check out this video of UCLA's college dorm room and see if this fits you and your kids' needs:
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