I’m a big fan of parents buying a condo for their college-bound child.
Here’s details on how some are going about it.
By Jeffrey Steele, Barron’s
Most parents don’t have much choice about their children’s college living arrangements. When the kids gravitate to dormitories, fraternity or sorority houses or off-campus apartments, their parents get stuck with the tab, which can be $10,000 or more a year. It is an outlay that is never recouped. But some lucky parents, particularly those of students attending schools in major cities, have given themselves a crash course in beating the high cost of college housing. Call it Condo-Buying 101.
These folks have purchased condominiums and installed their fledgling scholars in them. The parents can write off mortgage and loan interest costs, providing a nice tax benefit. More important, prices of most urban condos have been rising steadily in recent years. By the time their offspring leave the costly groves of academe, the apartment’s market value might have risen considerably. The parents can then sell the unit or keep it for use as a pied-a-terre.
Of course, there are dangers. The student might drop out or decide to attend a college elsewhere. Or the property market might decline. But even if prices do fall, the parents might not be any worse off than they would have been paying for a dorm room for four years. In any case, it’s a gamble many people are willing to take.
Complete article: Consider Condos to Cut Student Housing Costs