Vietnamese
Spanish
Cambodia Icon
HMong
(303) 649-1245
APPLY NOW
UPLOAD DOCS
logologo
  • Purchase
    • Making Sure You Are Pre-Qualified
    • First Time Home Buyer
    • Homes For Veterans
    • Investment Property
  • Refinance
    • Lower Your Payment
    • Consolidate Your Debt
    • Pay Off Your Mortgage Faster
  • Loan Options
    • VA Loans
    • FHA Loans
    • Conventional Loans
    • 15-Year Fixed Rate
    • 30-Year Fixed Rates
    • Investor Loan
    • Reverse Mortgage
  • Apply Online
    • Apply Now
    • Pre-Qualification Form
    • Free Personalized Rate Quote
    • Mortgage Calculator
  • Houz Mortgage Locations
    • Aurora
    • Boulder
    • Breckenridge
    • Colorado Springs
    • Denver
    • Durango
    • Fort Collins
    • Glenwood Springs
    • Grand Junction
    • Greeley
    • Loveland
    • Longmont
    • Pueblo
    • Silverthorne
    • Vail
  • News
    • Why You Need To Use A Mortgage Broker In Your Home Search
    • Finding the Best Mortgage Rates for You
    • What Is a Mortgage Calculator and How You Can Benefit From It
    • Real estate wire fraud is alive and well. what can you do to prevent it?
    • Settlement Reached On 2017 EQUIFAX BREACH. Don’t Snooze If You Were Affected By It
    • Strong Job Growth In June Pushing Rates Higher
    • Giant Tech Companies To Build Housing To Attract Highly-Skilled Workers
    • Home Builders See Labor Shortage As Their Biggest Concern For 2019
    • Crooks are out yo get your IRS refund
    • Avoiding a Nightmare Contractor
    • Savvy Flippers Know the Score
    • Myths About Realtors That Need To Go Away
    • Voice Activated Personal Assistants are Fun and a Little Scary
    • Selling Your Home on Your Own? It’s No Walk in The Park
    • When Reality Really Means Fantasy in Real Estate TV Shows
    • A Semi-Myth: Rising Tides In Real Estate Values
    • Does Remodeling Make Economic Sense?
    • Government programs helping to rebuild after natural disasters
  • About Us
    • Testimonials
    • Review Us
    • Submit Feedback
    • Licensing
    • Privacy Policy
  • Contact Us

Pay for a dorm room or buy a condo? Know what your money gets you

So you’re sending your kid off to college. Hats off. But what about housing? Will they live in a dorm, or is there a better alternative outside of him or her renting a room in a house? According to Bankrate, Janna Herron, many parents bypass university housing or off-campus renting altogether and buy a condo instead — all with the goal of recouping their investment after graduation.

The price of housing and meals can vary depending on where you live and what school your child attends. Students at public schools can expect to pay an average of $8,887, and those at private schools will pay an average of $10,089 per year for dorms on campus. Add to that the cost of tuition and calculate it over the 4-6 years it might take for him or her to get a degree and, well, you get it.

Herron admits that buying a condo is no cakewalk. Like any real estate purchase, it comes with potential pitfalls. She quotes a Realtor, who says, “You need to look at it from the perspective that you will be a seller a few years down the road. Be very aware of market conditions before you make a purchase. It’s not just about if you can get your kid’s friends to pay rent and make a little money.”

The factors to consider are how long your student-child might be there, what you might get for the property when you sell it, and whether the rents in the neighborhood support your investment. Here is one cold, hard fact, however. Only 39 percent of college students complete their studies in four years, according to the National Center for Education Statistics. 59 percent graduate within six years. So, it might be wise to calculate the worst-case scenario, then work backward if your kid sails through in 3-4 years.

Speaking of your grown child, how responsible might he or she be? Property that is not well maintained or abused can affect resale value unless you gut it and invest more money in it once they move out. Then there are on and off-campus rental rates. This is something you must study seriously to see if you must include other students renting rooms in the condo to defray the cost. Might getting some information on these potential renters be a good idea? A Realtor versed in rentals in the campus area can help you here.

Check with your loan consultant about all the variables of a purchase like this: short term ownership might mean a smaller down payment in case the condo loses value by the time you sell. By the same token, plans to own it longer might be best accomplished with a higher down to buffer against any spikes in interest rates and keep the mortgage payment lower.

On top of all this, there is research to do. How well is the HOA run? Are there complaints pending? Liens against the property? Even with an attractive unit, ownership can be a nightmare if the complex is poorly run, making it difficult to eventually sell. If you do invest, make sure your rental agreement is specific, spelling out damage deposits, pet permission/prohibitions, late rental fees, etc.

Knowing the rental market is valuable. If there are too many rentals, it might be best to skip buying. “Otherwise, look for communities with student-oriented amenities that will appeal to future parent buyers, such as shuttle buses to campus, common work areas with copy machines and Wi-Fi, pet-friendly units and facilities such as pools, tennis courts or movie theater rooms,” says Herron.

If your child is open to which school to attend, there are a number of college campuses where dorm rooms are not prohibitively expensive or are even in line with what a mortgage payment might be, according to Redfin. These include the University of Arizona, Georgia State University, University of Buffalo, University of Texas at El Paso, and many more. So even before your child gets out of high school, you may want to see where your dollar goes the farthest — whether they live on the campus or off.

Source: BankRate, Redfin, TBWS

Recent Posts

  • Questions to ask yourself before buying your first home
  • Vaccine scams begin infecting American lives
  • Permanent remote work is making many Americans rethink where they live
  • How to keep your videos conferences private
  • Design trends are all about making home interiors (and exteriors) new again

Categories

  • Buying a Home
  • Credit
  • Home Improvement
  • Insurance
  • Mortgage Basics
  • Mortgage News
  • News
  • Selling a Home
  • Uncategorized

Contact Information

PHONE: (303) 649-1245

FAX: (888) 752-8254

ADDRESS: 10700 E Geddes Ave, Suite 155 Englewood, CO 80112

Facebook
Google+
LinkedIn
Best Mortgage Brokers in Denver

Terms and Conditions Apply. HOUZ MORTGAGE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet Houz Mortgage’s and/or investor underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Rates and Terms are subject to change at any time without notice and are subject to state restrictions. Licensed by the Colorado Division of Real Estate. Houz Mortgage loans are originated by Colorado Homesmartz, LLC DBA Houz Mortgage, NMLS # 1578407. (www.nmlsconsumeraccess.org)

Lowest rates are reserved for most creditworthy applicants; not all who apply will qualify for the top tiers. Rates and APRs are subject to change and may not be available at the time of lock or loan commitment. Interest rates are subject to potential increases over the life of the loan, once the initial fixed-rate period expires. APR for adjustable rate mortgages are subject to increase after fixed rate period and does not include 3rd party costs or prepaid interest. Please contact one of our Licensed Mortgage Loan Originators at (303) 649-1245 for a customized rate and payment quote.


© 2020 houzmortgage.com

Upload Docs

Mortgage Form

Property Type

Single Family

Multi Family

Town House

Condo

Next

Bankruptcy / Foreclosure in the past 3 years?

Back    Next

Zip Code

Back     Next

Rate Your Credit

(Most people have GOOD credit)

Excellent

Good

Average

Fair

Poor

Back    Next

Upload Docs

Application

  • Fast Application
  • Full Application

Fast Application

HOUZ makes

HOME possible!

What do you want to do today?

Refinance

Purchase New Home

Property Type

Single Family

Multi Family

Town House

Condo

Back    Next

Bankruptcy / Foreclosure in the past 3 years?

Back    Next

Zip Code

Back     Next

Rate Your Credit

(Most people have GOOD credit)

Excellent

Good

Average

Fair

Poor

Back    Next

COVID-19 Update

March 12: Today, we closed Houz's Englewood office and asked everyone based there to work from home as a precaution due to COVID-19. Houz was prepared for this and is fully functioning during this time. Please do not bring any paperwork to the office and make alternative arrangements by calling (303) 649-1245 or by contacting your personal loan team until further notice.