According to the College Board, the average price tag for a student attending a public institution is around 20k per year, while those attending a private university averaged a little over 40k. With yearly tuition increases and college housing costs going up, parents and students alike are always looking for new ways to bring in money to help pay for college. Many are doing this by buying rental properties. Of course people have been purchasing properties for years, but by investing in real estate, you are literally investing in your child’s education!
The National Center for Educational Statistics college suggest that there are over 20 million students enrolled in college per year. So with that being said, aside from your main one (or two) – surely you can find a few more million reasons to invest. And since current interest rates are reasonably low, now is a great time to get into the market whether you have an incoming freshman or you’re a grad student. But we’re not talking about just buying and flipping for a profit, we are talking about purchasing a simple property that can house your student and a few others while they attend college. Thus lowering student and parent loan debt, and generating a nice monthly income after graduation.
Now don’t get me wrong, I’m not telling you to go jump into buying houses in hopes of making a profit. Naturally there are concerns associated with any investment, so be sure to consult with an industry professional first. Also, look at properties that are low risk. Your first investment property should be as hassle free as possible, so try to stay away from extreme fixer uppers, or “prize properties” such as high-rise condos.
Let’s face it. Going to college or sending a child to one is expensive-period. The important thing is being able to offset those costs effectively, and if your current situation allows then real estate investment is a great way to do so. For additional information on how you can purchase a great investment property in Missouri, give the professionals at Starting Point Real Estate a call.