One of the strategies that many parents have to save a bit of money is to buy property for their kids to live in while they are attending college at Winthrop. The idea is that they don’t pay the expensive boarding costs and make a little money on the side. Then they can turn around and sell the property after four years – at a profit of course. However, it’s not as simple as that. The following are a few things you should keep in mind:
- It’s not a long-term investment – The house isn’t going to appreciate enough over four years to make you much money. In fact, after all the closing costs that are involved, odds are you’ll be closer to breaking even.
- Consider the location – In some areas, buying a home will be cheaper than paying rent for four years – but in other places it will be cheaper to rent. Do the research before making a decision.
- Consider your kid – Your kid and the roommates are going to have to take care of the house – and college students aren’t exactly known for that. Make sure you’re prepared to handle any repairs and cleaning costs.