Ricky Mennie

Once your student graduates there’s a steady supply of students each semester in need of housing. And the school employs a large staff and will always have visiting faculty in need of temporary housing. If you don’t have an interest keeping a second home that far from your primary residence, the real estate can be traded with a 1031 exchange for property closer to your home

Talk to your accountant, your attorney and your student about this investment option and then contact The Mennie Group ® to begin your search for that perfect home away from home for your college bound child.

This decision depends on whether or not you think your student will be up for doing Home ownership items such as exterior maintenance, lawn care, etc. Often a condo suits the student life the best since most college students won’t be Interested in mowing the lawn in their free time. You will be paying a Homeowner’s Association fee at a condo or townhome in order to cover these maintenance items. This Will increase your cost but will insure that these maintenance items are done.

Please contract a mortgage loan representative to discuss the best options for financing your new property.

Even though the potential roommates are typically close friends, it is a good idea to Have a written rental agreement with roommates. The roommate rental agreement should cover all the items typically found in a residential lease such as: Term of lease, Rental Rate, Security Deposit, Utility payment agreement, Pets, Parking restrictions, and Notice to vacate.

It is necessary for you to talk to your accountant and attorney to determine the Ownership method that works best for you. Some parents will buy as owner occupied Property; others will treat it 100% as a rental property for additional tax benefits. There are many ways of holding title, including creating a Family Limited Liability Company (LLC)

If you decide to have your child on the mortgage and deed, you can help your child establish credit prior to making a mortgage loan application by obtaining a credit card in The student’s name, preferably a year prior to your purchase. In addition, if the student has a car it is a good idea to have a small loan on the car in the student’s name which can also help their credit rating.

• Students can choose share the expenses of home ownership by taking in another student and splitting the monthly home costs.
• Safety, You as a parent will know about the neighborhood your student is living in, wether its gated or provides security.  Your student can never be too safe!
• Owning your own home can save you alot of money at tax time. There are many different deductions that you can take that people do not realize.  Please contact your accountant for additional information on the tax saving potential.
• Students learn about the process of investing in real estate along with the responsibilities that go along with property ownership.
• The student can build up home equity that can be cashed out at the end of the four-year college period or held for longer-term appreciation.
• If a parent has more than one child attending college, the home can be used for as long as the family needs student housing or until the last child graduates from college.
• Depending upon the size of the home (2-3 bedrooms) the student can supplement his/her income by allowing for rental roommates
• Pets, which are not permitted in typical campus housing, can accompany your student to college and be a great comfort during lonely semesters away from home
• No storing furniture over the summer break
• Security deposits will not be required each semester