When getting ready to write a check for another semester of your college student living in the dorms or to help them pay their rent for off-campus housing, it might occur to you that you could buy them a condo to live in instead. Buying a condo has financial and lifestyle benefits for both you and your child. Here are three reasons why this is often a great option for parents of college kids.
When you pay for your child's apartment or dorm, you will never see that money again. Purchasing a condo can easily involve a comparable monthly expense in the form of a reasonable mortgage, but with a much greater potential ROI. Every year that you own the condo, it will build equity, which helps you build long-term wealth. After your child graduates, your profits will only increase because you can sell the condo once the value and your equity have increased enough to make a nice profit, or you can hold onto it and rent it out as an investment property.
Offset the Cost with Roommates
Even before you build equity in your condo, you will be able to help offset (and in some cases, completely absorb) the mortgage payments by renting out the additional rooms to your child's friends. Your child will get the fun, off-campus college living experience they've been wanting, and you'll get to save a lot of money when it comes to their living expenses. You may even be able to rent the entire condo out as a short-term vacation rental when your child comes home for summer break or studies abroad for a semester.
It's natural to worry about your kids when they are away at college. When you buy a condo for them to live in, you have much more control over their safety and quality of life. You can make sure they have a clean, comfortable, nice place to live and even look for a condo with safety features like motion lights, gated access, or a security system. You will also have a lot more say over their roommates, since you will also be serving as landlord. Knowing your child is living in a nice home with roommates you approve of can provide you with peace of mind.
Instead of continuing to shell out for an apartment or dorm for your child, you can experience these benefits for yourself by purchasing a condo.