Reasons to Buy a Home for Your College Student in St. George

College houseDo you have a student going to college in St. George, attenting Utah Tech University or another local school? Instead of helping them pay for room and board or letting them take out loans for the same, consider how buying a home to rent out to them while they are students might be the most mutually beneficial strategy. We can help you find homes for sale in St. George that meet your unique needs. 

Contact us any time to learn more about investing in real estate in St. George, and keep reading to learn more about why this strategy might be the right fit for you. 

Investment Instead of Expense

Paying for room and board, whether you are paying from your own pocket or your student is taking out a loan, is purely an expense. You won't see anything coming back from paying for a dorm. On the other hand, investing in real estate means you will, at the very least, have an asset to sell at the end of the four years. 

In most cases, in a thriving real estate market like St. George, you will also benefit from appreciation over those 4 years. When your student graduates, you can reasonably expect to have built substanital equity in the home that you can then access through selling the home. Otherwise, you might opt to keep the home as a rental property, either continuing to rent it out to your student or finding other tenants. 

Predictable Housing Costs

When you are in control of the rental rate, you can stabilize housing costs as a benefit to your student. Whether you are charging rent to your student, or just to their friends and roommates, your locked in mortgage expense will allow you to avoid the unpredictability of rent over the next four years, allowing your student and/or their roommates to benefit.

Instead of dealing with fluctuating rental prices, owning a home provides predictability in monthly expenses. This stability can be particularly advantageous for college students who are often on a fixed budget.

Tax Benefits

Homeownership comes with potential tax benefits that can positively impact your financial situation. Mortgage interest deductions, property tax deductions, and other homeowner tax benefits may apply. Consult with a tax professional to understand how these benefits can be optimized based on your specific circumstances.

Retirement Planning

Many people find themselves in a season of life where sending kids to college and final preparations for retirement are overlapping. This can be financially stressful, and investing in a rental property may be a great way to alleviate that stress. 

By purchasing a rental property, and allowing rent (either paid by your student or by others they choose as roommates) to cover most of the ongoing monthly expenses, you can acquire an appreciating asset for a relatively small investment.

Once your college student completes their studies, the property can continue to generate rental income. St. George's appeal extends beyond its role as a college town, attracting residents and tourists alike. Whether renting to young professionals, families, or retirees, the property can serve as a long-term income-generating asset.

Years from now, the home you purchased with college students in mind will still be poised to be a lucrative investment property for students at the university, continuing to provide passive income for you in your retirement years.

Peace of Mind

Sending your child off to college is a major milestone. For parents, the decision to buy a home for their college student brings a sense of peace of mind. Knowing that your child has a secure and well-maintained place to live provides reassurance, especially if they are living away from home for the first time. It allows you to actively participate in their support system and ensure their well-being.

Homeownership grants you control over the property, allowing you to make modifications, improvements, and adjustments to meet the specific needs of your college student. This level of control enhances the overall living experience and allows for a more customized and comfortable environment. 

Buying a home where your college student can live is a true win-win. Provide an ideal home for your kid, while building your real estate portfolio and setting yourself up for success in the future. Ready to look for homes for sale in St. George that might work for your college student? Contact us any time.

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