Student Residences that pay you!

Fall will soon be here and for many young people it's time to leave home and head out for college. If you're a parent of a college student, it can also mean that it's time to start pulling out your cheque book to pay for a student residence. But did it ever occur to you that there's a way to provide great housing for your child and actually make money, rather than just incurring another cost?

Real estate has traditionally been one of the strongest, most stable investments available to Canadians. You're already committed to paying first and last months rent and a security deposit upfront, followed by monthly fees for your child's student accommodation. Why not consider adding some additional funds and making an investment in an income property instead? You could rent out a few of the rooms to other students and actually end up in a positive cash flow situation. Chances are your son or daughter already knows some other young people who will be going to the same college who would appreciate the privacy and independence that comes with renting a room in a residential home.

Many students complain about the noise and distraction of student residences on campus. Living with just a few other like-minded people can be a tremendous benefit while your child is dealing with the sometimes stressful environment of post secondary education. It's also a great exercise in learning to manage the realities of life they can expect when they head out into the working world.

Of course, if you have more than one child who will be attending the same school over the space of the next few years, your cash benefits will be doubled. Plus, your kids have the pleasure of staying close to their siblings. And while you're putting your children's residence costs to work purchasing the property, and collecting rents from other students to help you pay for it, you could also be earning even more equity as your property increases in value over time.

If you're thinking of buying a property to rent out during the school year, your Coldwell Banker real estate professional can be a wealth of information to help you get started and to find the property that's right for your situation. Aside from being an affordable but well-maintained property that's close to campus, there are many other things to consider, such as access to transportation, security and neighborhood compatibility. Of course, potential resale value will be a very important consideration when buying a property for use as a student residence. In most cases, you will probably want to sell the property after your child (or children) finish their education at that location and move on. That means you'll ideally be looking for a positive return on your investment in three to five years. Your Coldwell Banker will take all this into consideration to help you make an informed choice.

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