room and board costs by buying a house
As any parent knows,
college costs are skyrocketing. According to the College Board, the average cost
of a four-year private college is $27,677, a four-year public school for in-state
students is $12,841 and $19,188 for out-of-state students.
that's just tuition. Room and board tack on about 30 percent more to the cost.
For the 2006-2007 school year, for example, the University of Notre Dame charged
$33,410 for tuition and $8,730 for room and board, according to the National Center
for College Costs. Indiana University cost $7,460 for tuition and $7,164 for room
With those fees, it's not surprising that more
parents are buying homes in the towns where their son or daughter is attending
college. And they can also rent extra rooms to other students to help pay for
"The idea of buying a rental property, holding
it for four or more years and having someone you can trust on the premises to
keep an eye on things is an excellent investment idea," says Don Romanek,
who operates Whitehouse Station, N.J.-based OffCampusNetwork.com, a nationwide
database of rental-property listings and information and services for landlords.
|What to consider before buying|
He says he has
seen a huge increase in students seeking to share off-campus accommodations to
offset rising school expenses. "Students can often share rooms or split the
rent in a single-family house for a lot less money than a college dorm,"
he says. "Homeowners are also finding this an advantageous market, because
there is a solid market of tenants looking for housing near the college."
jumping into this investment, there are a few things to consider for parents who
are pondering a college-town home-buying decision for their kid(s).