A new trend developing, thanks to the cost of dorm life, has some college-student parents considering buying a house for their kids to live in during their college days.
According to realtor.com, estimates from the College Board priced the average living-on-campus cost at between $10,138 to 11,516 for 2015-2016 – a number they say looks more like $40,000 over four years, or $60,000 for six years.
This is an investment, according to realtor.com, that should be made by families who are planning to rent it out after their child has graduated. Financial coach Kathryn Amenta, quoted in the article by Clare Trapasso, says if parents buy a house for their child with plans for roommates, they should pay rent – allowing the parents a path to break even.
With some risk involved, parents have obvious concerns they should square with before making the commitment, according to the article. For instance, if their child drops out of schools or decides to transfer to a different school, they would then be stuck with the property. Also, considering how well the child might maintain the property or the property’s proximity to the parent.