If yes, then you must have felt overburdened having to bear not just the college fee and other related expenses but also heavy expenses on account of rented accommodation for your child. If your son or daughter is studying in an undergraduate course in the University of Arizona (U of A), you can expect a burden of $8000 to $10000 per annum on his accommodation irrespective of whether he is lucky to get student housing or you have to find off campus rented accommodation for him. Considering you have to pay this rent for 3-4 years depending upon the duration of the course, it is a prudent idea to buy a condo so that you pay monthly installments. In the same amount of money that you pay as rent, you can invest money in buying an apartment near University of Arizona.
Why waste your money on rent?
There are many parents who are wondering why they should pay around $1000 in rent for the accommodation of their child when this money can so easily be used to pay the EMI of a condo. In recent year, shortage in student housing has been reported by University of Arizona, forcing parents to look for accommodation of their child outside the campuses of the University.
Why pay money to Tucson landlords who are benefiting from this shortage of accommodation for the students coming here to study?
Earn rental income from the same property
By paying a onetime down payment to the bank, you can start to pay the monthly instalments roughly equal to what you pay to the landlord who rents out his condo to your child near University of Arizona. Your money now goes to fulfil your mortgage obligations and you can breathe easy as your money is not going down the drain. Yoru son or daughter can live in this property for as long as he desires or for the duration of his course in University of Arizona. Afterwards, you can do whatever you feel is right for you.
The manner in which shortage of student housing is growing at University of Arizona, you would be happy to find parents of students requesting you to give your condo or apartment on rent to their wards. There is a mad rush among college going students to somehow find accommodation near University of Arizona, and you can milk your property to earn rental income even after your son has passed away from the University. Season or no season, students will continue to show up asking if you have a room available on rent for them. This means that you have to pay EMI’s of the lender only till your son is using the condo as afterwards you will start to earn attractive rent from your property in Tucson.
This is not all as you then become the landlord and get the right to increase the rent. With a huge shortage in student housing in University of Arizona, you will get the going rent and even higher rent if you allow two or more students to live as roommates. You will find that you are left with hard cash even if you spend some of the rental income on repairs and other minor improvements. One the one hand, you are able to create wealth for you and on the other you also get a chance to make an earning form this rental property.
Location is very important
When buying a property to work primarily as accommodation for your son or daughter studying in U of A, you must keep in mind its location. It should be situated within walking distance from the University campus so that your child does not waste time while trying to reach his classroom. Proximity of the property you buy from the University campus is crucial for its success as a rental property when your son leaves after completing his course. Parents of students prefer accommodation pretty close to the campus even if it means paying higher rent.
How long do you want to hold the property?
There are many parents who plan to sell of their properties after their ward has completed his studies at the University of A. This means you keep it for 4-5 years and then use the equity built up through appreciation of prices to pay off your remaining payments to the lender. You can expect some profit from selling the property after 4-5 years and consider it as a very good one for you. This is because it compensates some of the educational expenses and also gives your ward a chance to live in comfort and style for 3-4 years. You can also choose to keep the property for a long time period, paying the EMI with the help of rent you get from students using the property as their accommodation while studying at U of A.
Use Kiddie Condo Program
This is a program that allows parents to buy a house with just 3.5% down payment and FHA mortgage rates. The house with 4 bedrooms can be used for the accommodation of the student and the buyer can also rent out the remaining rooms to earn rental income. Your son gets credit for buying this house and he can build credits while studying at U of A. You can get a loan provided you have a credit score of 625 or higher. You are free to sell the property after your son has completed his studies at U of A.