Buying a Second Home for Your College-Bound Student

If you have college-bound kids at home, one thing to consider are the different housing options available while they are away at school. In addition to the costs of college tuition, it’s no secret that student housing can be quite expensive. One option for student housing is gaining in popularity with parents. Buying a second home can turn out to be a great way to save on the overall costs of sending your kid to college. Owning additional property also has other benefits worth looking into.

Depending on the location of your child’s college campus, you could be looking at an additional $9,000 per year for housing, and that’s just an average. There are other college towns where parents are paying close to $3,000 per month for their student to live. For many of us, this may be an exorbitant cost, which is leading many parents to seek out a second home. 

Not only is a second home roomier than cramped student accommodations, there are financial benefits parents can gain by purchasing additional property. Including a few roommates to live with your college student can help ease some of the financial burden of a second mortgage. Keep in mind all the costs of owning a home such as maintenance fees, insurance, and utilities when determining rent figures for roommates.

There are also potential tax breaks to keep in mind which you may be eligible for with a second home. If you’re claiming the house as a second home and not a rental, you should be able to claim the majority of your mortgage payments on your taxes for significant savings.

Provided the property is well-maintained, the value is likely to increase. If you plan to sell the home after your child has finished college, chances are you will gain through the investment, which can add to a retirement nest egg or possibly a new retirement home.

Other options for after your student has graduated include gifting the home to your child after graduation, turning it into a rental unit, or keeping it for yourself after retirement. The sky is the limit for your second home once your child is no longer using it, and real estate is commonly seen as an excellent financial investment.

If you’re worried that the home might not be maintained properly and will lose value as a result, include your student in the conversation. Let them know what your plan is, and what expectations you have for the property to determine if this is the right move for your family.  If possible to include a regular yard maintenance or cleaning service, this may help balance the responsibility and help lessen your concerns.

Keep in mind, buying a second home doesn’t have to be for kids going far away to school, as Texas has many great colleges right in Montgomery County’s backyard. For example, the Lone Star College System in The Woodlands, Sam Houston State University in Huntsville, the University of Houston in downtown Houston, and in Prairie View the Prairie View A&M University. If you child attends one of these schools, living near campus can still be the best option, and buying a second home may be an ideal solution.

You can find an in-depth review about purchasing a second home for your college student here with this Realty Times article.  Take your time and carefully weigh out the pros and cons of this financial decision. When the time is right to buy and sell your home, we’re here to help you with all your real estate needs! Call me, Laura Austin, at (281) 789-2911, or (936) 321-2977 or email me at Laura@RealtyTx.net. You can also visit me at my website for available listings and additional information.