We know that living in dorms or in cramped apartments is pretty standard for college students, but some of them (the lucky ones) are choosing to skip the dorms and live in investment properties instead courtesy of their parents, grandparents, or other relatives. Or sometimes the student makes the condo purchase themselves - this is particularly likely in the case of grad students or adults going back to school to make a career change.
In our opinion, it is a nice move if you can swing it. Not only will the student get to live somewhere that's likely more comfortable, private, and spacious than a dorm room, the family will reap the benefits of their real estate investment in the future. That said, it is important to remember that the student will likely only live in the place for four to five years, unless they have younger siblings who go to the same school and want to live in the same spot, or they decide to stay in the city where they went to university post-graduation.
Accordingly, be sure the local real estate market is likely to remain strong and vibrant in the near future - this is where working with a local real estate agent can be extremely helpful. (Note: this is less of an issue in more urban cities like Chicago with many prominent schools as opposed to true college towns where the university is the main driver of the economy). Also, keep in mind how the property will be managed if the student decides to study abroad for a semester or travel during the summers - is there a property management company on site/on call? Can the place be sublet?
In cities like Chicago with many leading schools and universities, coupled with a thriving real estate market, this is becoming an increasingly common trend. Some parents are even buying up real estate before their children have been admitted to their top choice schools, worried that inventory may be scarce once their kid is ready for college - talk about planning ahead!
Is your child hoping to attend college in the Chicago area? Our real estate agents can help you make the right investment in your children's future home away from home (one that you both will be happy with) - contact us today!