Why should you buy a home for your college student....ways to pay for tuition and make money!

WHY SHOULD YOU BUY A HOME FOR YOUR COLLEGE STUDENT?

I WILL GIVE YOU MANY REASONS.....

If you haven't saved any money for your students college fund, buying a home for them to live in is a great way to over come expenses.  I know several people that purchase homes for their college student and make enough money or even more to pay for college.  It is a really smart investment and great stability for your student.

Owning the property your student lives in can be beneficial in many ways:

1.  You could put the mortgage in their name as well to help them gain credit.

2.  You get many tax benefits from owning a rental property.

3.  If you buy a house with more bedrooms than you need have your student rent to friends to help pay the monthly payment.

4.  It gives your student stability by not having to look for a new place to stay every year.  They also have a place to keep their things over summer when school is out.

5.  By buying a property with a fixed mortgage rate your students expenses will be fixed all four years of college.  They will also not have to worry about paying security deposits and getting the deposit back every time they move.

6.  It will be a great learning experience for your student.  They can help with the process so they learn what real estate investing is all about.

7.  They will learn the responsiblity of owning and maintaining a property.

8.  If you buy right then in 4 years you are sure to make enough money to pay for your students tuition.  As we all know, you can buy right now!  Also, if your student is able to take the mortgage out himself he can take advantage of the $8,000 first time home buyers tax credit that does not have to be re-paid.

Here are some tips from me when purchasing a property:

• Try to find a foreclosure or wholesale property that needs a little work.  You can put your student to work by painting and other easy to do items.  You are most likely going to get a better deal on a house that needs some work.  You don't have to have the house in perfect condition when the student moves in.  Just make it nice and livable and do the rest of the upgrades along the way.  You can use extra rental income or take out an equity line to help with the rehab.
• Take advantage of the tax credit if possible. This will give you some extra rehab or spending money for your student while in school.
• Make sure you obtain a home inspection so you know exactly what you are buying and how much work the house will need.
• Have a professional contractor come over and give an estimate of the repairs so you will know how much money you will need over time to rehab the home.
• Find a realor that specializes in foreclosures and renovations.  I specialize in this market and feel it is very important to find someone in your area who does as well. There are many realtors who don't know the first thing about foreclosed homes and how to negotiate the best price possible. There are many creative ways to negotiate with banks so you can get the lowest price possible.

I hope this helps any parent thinking of purchasing a home for their student.  If your student is attending the University of South Carolina or any school in Columbia, SC please give me a call 803-422-8306.

Amy Gardner

www.aogproperties.com