Are you a parent gearing up to send your child off to college? If so, you’ve probably thought about dorm costs and meal plans, and if you’re like many parents, you might be shocked at the prices. But have you considered another option? A growing trend among parents is shifting the paradigm of college living: purchasing homes in college towns for their kids to live in.

Instead of forking over thousands of dollars each year for a tiny dorm room and a meal plan, parents are buying properties where their college-aged children can live alongside friends. It’s not just about convenience and comfort; this move can have tangible financial benefits as well.

An interesting perspective highlighted by Money Magazine suggests that buying a home for your college-aged child can be a savvy investment strategy. The idea is that your child would live with friends who pay rent, thereby covering the home’s expenses and ideally, creating a self-sustaining investment.

It’s a two-fold win. Upon graduation, your child walks away with a valuable diploma, while you gain equity in a property. It’s a strategy that could potentially pay dividends in the long run.

However, this isn’t to say that the path is without obstacles. Owning a property in a college town can present its own set of risks and hassles. It’s not a decision to be taken lightly, and it certainly isn’t for everyone.

That’s why it’s critical to do your due diligence before embarking on this venture. Crunch the numbers, research the local real estate market, understand the responsibilities of being a landlord, and weigh the potential risks against the benefits.

With the right planning and foresight, buying a home in a college town could be a win-win situation for both you and your child. It could potentially be one of the smartest financial moves you make, providing a unique way to support your child while also growing your investment portfolio.

We’d love to hear your thoughts on this. Would you consider buying a house for your child in a college town? What potential challenges and opportunities do you see in this approach?

Is your graduate moving out of state? We’ve got a huge network – call/text/email if you need a referral for a real estate agent in their city/state! 🏡