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Buying A University Pad For The Kids


									?The happy day has come and little Jonny or Jenny is ready to leave the washing
machine and food service that is home in favour of life in the real world... ok
University first for 3 or 4 years, then the real world. Thousands of young adults head
off to higher education each year for an experience that can cost their parents an
absolute fortune. (To sound a little older than I really am) Back in my day, we got a
University Grant to pay for our accommodation on and off campus, our books and
some money in the bank for expenses like... er... paper and pens and other essential
things that all students spend their money on (stop the laughing in the back). Today of
course there are student loans which mean graduates leaving University enter the 'real
world' with the albatross of debt already firmly fixed around their necks.

Buying a home for your kids when they head off to university may sound a little
drastic, but there are some very convincing financial arguments to persuade you that it
is something to seriously consider.

Buying a property in the right location within your financial means is almost always a
good investment. If it's located close to a University campus you will have a steady
flow of potential tenants on your doorstep to produce an income. Because you
selected the property and ensured that it was safe and sound you can sleep easier
knowing your kin are not in some rat infested death trap that they found the day
before their semester stated. Buying a 3 bedroom house will enable you or them
(given lender permission of course) to rent out the other two rooms to classmates to
supplement the mortgage payments. Then when their time at Education High is finally
over, you can either continue to rent the property and keep it as an investment or sell
it and with a little good luck and judgment have made a profit over the three or four
years that you've owned it. With this profit you could potentially see your kids leave
University one step ahead of their peers, debt free and unburdened to launch into the
real world.

OK, nothing comes with a guarantee, and you've all read the small print on any
mortgage agreement or heard it on the TV in an advert for a lender telling you that
property prices can go down as well as up. Whether you do or do not make a profit on
a property is governed a little by your research and care when searching for the
property, not over spending, and buying a home suitable for the purpose of housing
students, but quite frankly it mostly depends on luck as nobody can truthfully tell
which way the market will turn over a 3-4 year period, but for all the other reasons
mentioned it is still well worth considering.

Another thing to consider is that buying the property jointly with your kids can also
be a way of giving them valuable real world responsibilities. Give them the job of
finding and choosing their tenants, dealing with estate agents or University
administration, paying the mortgage and collecting the rent. They are young adults
after all, they can handle it, and you are always there to lend a parenting hand if need
be. There are some tax issues that you will need to investigate before doing any of this,
and you should speak to an accountant about them, but all in all buying a University
home for your kids seems like a good option.

Richard Cohn, Founding Director of, the UK's co-buyer
network. Join thousands already registered looking for someone to co-buy, co-invest
or co-rent with.

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